27.
10.16
08:44

Low EU dairy prices press the milk production - but not in all EU countries

Low EU milk prices lead with delay to the production decline in. In the year 2016 continued low milk prices have resulted in the average of the First 8 months of the year still no reduction in production in the EU . The total production is from Jan to Aug 2016 to 2% above the previous year's level. It should be noted that in the first months of the year 2015, the quota system has left a significant braking effect. After the end of the quota the EU milk production in the 6 countries increased substantially, which have been at the upper limit of the permitted quota levels. In other States the quota was exhausted price factors already better, without however exceeding them.    The current relative to the period of April Aug 2015 is unaffected by the ratio effect. It turns out that milk production volumes have been withdrawn in the EU due to the low prices significantly. But the developments are in the individual Member States different. In Sweden, the UK, France and Portugal , as well as some smaller Southeast European countries already initiated reducing milk production on 1-6.2% was tightened. The absolutely largest decline with 5.9% can be observed in the United Kingdom . The particularly low British milk prices are background. Von the production increase reversed course in a production decline are a number of other countries as compared to the same period last year. Include above all Germany, Poland, Italy and some smaller South-Eastern European countries. With smaller growth rates Ireland, Greece, Netherlands, Romania and Bulgariaare still on course for growth . Ireland has enormous cost advantages that are not been exhausted during the quota system due to the grazing. Also in the Netherlands, the high technological level and the traditionally strong export orientation contribute to the continued increase in production. In Romania and Bulgaria, it is the low level of output, as well as a growing rate of delivery that promotes milk production. As a result of the decline in the major production areas dominated the reduction effect in the EU. May be year specific weather developments play a role, the food availability just have affected in the northern European countries.

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