Ireland tops for EU milk expansion

Ireland topped the EU milk production growth table in May, producing 69,000 tonnes more than 12 months previously.

The growth in production in Ireland takes advantage of relatively buoyant markets, with the average EU farm gate milk price of 32.9 c/kg in May 2.5% higher than the last five years’ average, according to the EU’s Milk Market Observatory (MMO).

The previous EU pace-setter, the Netherlands, produced 7,000t less in May than 12 months previously, having had to remove up to 60,000 dairy cows, to reduce phosphate pollution.

A 2.8% milk increase in Italy has added 65,000t to their May production. The only others achieving significant tonnage increases are Poland, up 31,000t, and Spain, 18,000t.

May milk production fell behind the 2016 level by 71,000t in Germany, and by 66,000t in France.

Annual milk production estimates for the main dairy countries are a 1% fall in Germany, a 2% fall in France, no change in the UK, and a 1% fall in the Netherlands. Globally, compared to 2016, projections are a a 1% fall in the EU, a 2% gain in the US, a 1% gain in New Zealand, no change in Australia, a 0.2% gain in Argentina.

This would add up to a 2.2 billion kg increase in the world’s 60 bn kg supply.

The MMO says cheese and whey production is now more remunerative in the EU than butter and skim milk powder, with the highest cheese prices in four years offsetting the record butter price.

But these developments, and a stronger euro, make EU dairy products less competitive than those in Oceania or the US.