Due to the price increase milk production is concentrated on a few regions

Milk market: different growing production volumes

Average milk prices usually provide an incentive for more production. But not in all countries, the price is the ultimate control scale for the production. The outlets, production costs and the infrastructure in the respective production areas represent more significant factors.

In the last 12 months of the second half of 2013 and 2014 1st half-year milk prices were at the highest level. How much the individual production areas have responded, has been very different.

The EU-28 has the highest absolute growth with 5.5 million tonnes . For the world's largest closed production area corresponds to the increase but only 3.8%, but still considered above average compared to the past few years.

New Zealand is the world's largest exporter of dairy products. An increase in milk production by + 9.4% corresponds to 1.9 million tonnes but just increase. The reason lies in the 14 times smaller output size.

New Zealand has already high growth rates in recent years behind it. The increases moderate will be for the season. Braking factors are in addition to the limited forage area, the capital service load and the in recent times by 30% reduced New Zealand milk prices.

Brazil has nearly the same amount of 1.8 million tonnes increase in milk production, but in contrast to other States, Brazil is an importer of dairy products.  The increasing amount used urgently for the additional requirements in their own country.

The United States have increased their milk production to 1.2 Mio.t . This corresponds to a relative increase of 1.3%.            Aftermath of the drought is the cause of low increases.

Exporting countries with stagnant domestic consumption must deduct any additional production unit in third country markets. This is especially true for the EU, the United States and New Zealand.  While the falls EU a leading role to. This intensified by the fact that the deckelnde quota system is dropped completely from spring of next year.  However, that has milk quota maximum limits how long lost, because the EU rate as a whole for years no longer exceeded. Only in a few countries, traditions have occurred in single years.

For a variety of dairy production areas changes relevant to market milk production not occurred in the last 12 months including May/June 2014.

The continuous fall in production in Russia is striking in recent times with - 2.2%. Against the backdrop of the Russian import alert for dairy products from the powerful regions of the EU-28 and United States arises the question of how a Russian increase in milk production are to succeed, to achieve at least a partial compensation of blocked imports of average 35% of the milk product consumption. Remains open also wonder what milk production areas except the blocked countries of the EU and United States are able to make sufficient quantities from the additional production for the Russian substitute import requirements available the answers on the result run out, a rising domestic production nor substitute imports sufficiently capable of being, to replace the blocked imports. The majority of import barriers will be to raise consumer waiver due to lack of available supply or high prices of Russian consumers.

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