28.
10.14
16:20

EU milk deliveries is booming

EU dairy market: high milk deliveries and rising production of milk powder

High milk prices in the past, falling prices of concentrate in the presence and the impending abolition of the milk quota in spring 2015 are the driving forces for an unusually high increase of milk deliveries in the EU 28. The Russian import lock, the waning demand in the export business and the limited development of consumption in the internal market act as inhibitory factors in recent times in appearance. Still, the driving factors of the braking forces dominate.  

In the new milk year from April until July 2014, the EU milk deliveries to + 5.8% have risen and continues unabated since the beginning of the year the growth. There are however differences between the EU Member States. Highest growth rates are countries, which so far do not have exhausted their milk quota. This applies to Romania with an increase of + 16% , in the main a consequence of a higher delivery rate of House utilities. Baltic States are raising even more sensitive Russia lock their milk deliveries in a category by + 8.8% to 12.5%.

Spain, France, Great Britain and Ireland less than 90% exploit their milk quota for t, producing but increase due to the recent development between 7.1% to 9.2%. Also in Poland and Hungary the growth rates between 7.6 and 8.4%

Germany are moves in the lower mid-range with a + 4.3% increase. Holland, Denmark, Sweden and Italy is moving in the range of + 2.5 to + 3.6%.

Greece remains as the only area, whose milk delivery to - 4.6% goes back.

The production turn, which currently is in the European dairy industry, should be for the time being not to brake. However, milk production rises no more than increasing herds, such as that in the past year resulted in the case, but due to continuous increase of milk yield per cow and year. Cheap basic and feed supply support this development. The impending criminal charges represent a possible brake just in the few 6 countries handed down to the milk quota. This affects only for the smaller part of the Member States and the amount of milk . The political discussion on the actual implementation of the tradition of dispensing is doing another one, to make the seriousness of the penalty payments in question.  

Rising milk delivery is processed to high proportions to the storable and transportable cheap milk powder , because the consumption possibilities for fresh milk are limited. The previously strong sales channel of cheese and butter is little promising due to the Russian import lock .

Recent developments of milk production in the northern hemisphere indicate a decline. However, is this usual seasonal reduction. Only when the milk deliveries would take an above-average, the speech could be a cyclical trend reversal. The fact is. knowing but little.

The strong increase in production overwhelmed the development of consumption with the result that world prices have already fallen and shown little inclination , pushed for the time being back to. This requires clear signals from the offer such as demand side.

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