EU milk production: status and development before the end of the quota

European milk producers in the starting blocks

Less than a year before the end of the quota in April 2015 have upgraded their production capacity to almost all EU States. However, Spain, Greece and the Czech Republic, which have further reduced their milk production are excluded. Basis of assessment is the critical period from Jan to may 2014 compared to the previous year.

Among EU-countries with significant growth rates, several groups are indistinguishable: in the new Member States are surprisingly high increases in Romania with + 15% and in the Baltic States with + 8 to 13%. The favorable location conditions of a cheap milk production at the same time sharply increased prices are essential driving force. Also Poland's small-scale dairy sector has growth rates of almost 7.5%. It is striking that exactly these countries have achieved the highest price increases.

Favourable conditions can be found in Great Britain, Ireland and France . All three countries had previously scaled back their production under the quota system and exploited the related to quota only to 90%. The high milk prices in the last two years have strongly favored milk production in particular on the favourable grassland sites. The growth is correspondingly high with + 7 to + 12%.

The increases to the 3-4% in the good average adhere in other Member countries . Germany is also. However, a 3.6% increase in German causes an above-average increase in absolute amount of milk.

Generated the more production of milk has been falling cow numbers in the CEE countries with 2%, but higher of the remaining cows milk, i.e. the restructuring continues. The herds were again expanded after years in the old EU countries. The high point was reached in the year 2012/13, already fizzled again in the year 2013/14 and should be 2015 again declined. Yet the milk production will continue to grow due to the increase in performance per cow, but the pace should take off.

An excessive increase in milk is not expected in the EU. Declining recently milk prices will affect dampening effect on a close level of average production growth.

Overall, a clear shift of focus of the production sites is in the EU to observe. High increases are to determine in the grassland sites along the European North and Baltic Sea . Above average to develop also the European Central mountainous areas with high proportions of grassland. An increasing dilution of milk production takes place in regions of intense fruit markets. The strongly increased competition of the market fruit displaced the dairy industry despite cheaper milk prices in these regions.

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