Increased milk production in EU is depressing world markets

The finger is now firmly pointed at Europe as the source of growing dairy supplies depressing world markets.

As prices in Tuesday’s GlobalDairyTrade auction dropped for the third time in a row, falling 7.9%, sources at Fonterra, New Zealand’s dominant milk processor, said production from major regions was declining, with the exception of Europe.

“The drop in milk output from New Zealand in recent months has been matched threefold by the increase in production from Europe,” said a spokesperson.