USDA: Global milk production growth halted in 2022. In its most recent semi-annual publication, the US Department of Agriculture (USDA) estimates global milk production below the previous year's level. In the important production regions, however, the developments are different. A decline of almost 2% is expected in the world's largest production area, the EU-27 . Prolonged drought restricts the availability of feed. High feed costs and other increases in the entire production chain are not sufficiently offset by the increased milk prices. However, depending on the precipitation conditions, the results in the individual Member States vary. Increasing milk deliveries can be observed in Austria, Poland and the Baltic States. However, milk production is being reduced in the large production areas of Germany, France, Ireland and Spain and other regions. Milk production in the USA lags behind the previous year. In this case, too, the increased costs ensure a slight decrease in the quantities offered.Inflation-related increases in the price of dairy products are dampening domestic demand. The strong dollar is slowing down exports. India's usual growth rates of 5% and more will not be reached in 2022. The USDA assumes an increase of +2%. The late monsoon rains result in scarce and expensive fodder. The country is mostly self-sufficient. Foreign trade hardly plays a role. A slight decline in production is also expected in the world's largest export region, New Zealand . The production capacities on the two islands are largely exhausted. Higher processing costs due to energy prices are eating away at the increased payment prices. The weak demand in the main sales area China is slowing down. New Zealand exports 95% of production in the form of dairy products. GDT auction prices have fallen in recent months even as supply volumes have fallen to seasonal lows. China's milk production is expected to increase by +4.5% due to the high prices of the equivalent of 60 ct/kg. The high import prices favor self-production.However, the limited available space restricts the possible expansion of production. The Middle Kingdom remains the world's largest import area for dairy products of all kinds, with a focus on milk powder. The development of the global milk sector is being pushed back noticeably by inflation rates and an income-depressing economic recession.
