Higher EU milk production delaying recovery

RECOVERY in the dairy market will be delayed because the biggest milk producing member states in the EU are increasing milk production.

Irish milk production was 6.73% under quota from March to August, when account is taken of the butterfat content. In sharp contrast, dairy farmers in some EU member states have taken advantage of feedstuff price cuts to offset the lower milk prices by boosting output.

Germany, the EU’s leading milk producer, increased production by 8% for April, May and June, compared to 2008.

With production in June some 12% higher than 2008, Germany is now over quota for the year to date.

Italian milk output increased by 4% for April, May and June, and the latest EU statistics indicate that Dutch and Polish output has increased by almost 4% for the period, compared to last year.

However, the Italian and German agricultural ministries have proposed herd retirement schemes in an effort to reduce output. In April, May and June, milk production was 3% lower in France and 1% lower in Britain, compared to 2008.

In the first quarter of 2009, total EU milk deliveries were down compared to 2008, but recovered to 1% over in April and May.


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