EU milk production falls for the sixth month in a row

EU milk deliveries were 3.7% lower in November 2016 than the corresponding month in 2015, the sixth consecutive month with a reduction, the latest figures from the EU Milk Market Observatory (MMO) show.

This is the equivalent of a decrease of 440,000t on November 2015 levels.

In the first 11 months of 2016, EU milk collections were up by 0.7% on the same period in 2015.

Significant decreases have been reported in major producing Member States such as the UK, France and Germany, although in some others, such as Poland, Ireland and The Netherlands, the decline is not that pronounced.

For the January to November period of 2016, Irish milk production was up 4.8% on the 11 month period previous, while UK production fell 4.2%.

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For 2017 output could progressively reach and exceed 2016 levels as a reaction to higher milk prices, Eucolait, the association for the European dairy trade, said it its report to the MMO.

Eucolait has estimated that for 2017, EU milk production will increase by 0.5%.

Meanwhile, draft forecasts from the European Commission show that it predicts Irish milk production to increase by 4% in 2017 and UK production is expected to make a recovery, with an increase of 3%.

A small recovery is expected in France this year, with production forecast to be up by 0.6%. German production is expected to increase by 0.4% next year.

No SMP Sold At Third Tender Event

Last week, no skimmed milk powder (SMP) was sold at the latest tender event with prices offered ranging from €155-190 per 100kg.

These were well below the minimum price set at the first tender on December 15 of €215.1 per 100kg.

As a consequence, the Commission recommended for a second time to refuse all the offers on the count that they were well below prevailing market prices. Price bids were received for a total of 7,490t of powder.

The quantities offered for sale by the EU Commission since November past represent roughly 6% of the total 354,000t which went into public storage in 2015 and 2016.