Annual changes in milk production in key export regions
The preliminary projected milk production in 2013 in major export locations around the world is comparatively weak. The USA and Brazil are still the best performers with the highest annual volume increases. The EU occupies a middle position. Production in the leading export countries New Zealand and Australia remains unchanged. Argentina is only able to achieve moderate growth compared to previous years.
The reason for this development is the different weather conditions in the respective countries. If milk production is predominantly forage-oriented, extensive dry periods lead to a lack of grass growth, which is directly reflected in lower milk production. This was the case in New Zealand and Australia in the first few months of 2013. This was also partly true for the EU-27 with the delayed start of vegetation.
High feed prices prevented a stronger increase in production in the concentrated feed-oriented production locations in the US and EU, although demand for dairy products was sufficiently strong, as the stormy price trend in April showed.
Previous years show how changeable economic conditions can be in individual years. The year 2009 alone affected almost everyone. That was the time of the financial and economic crisis, when almost everyone suffered.
It will be interesting to see what else is in store for us in the coming year. At the moment, things are looking quite moderate.
The New Zealand dairy FONTERRA organizes an international Internet auction for dairy products every 14 days. The price results are summarized in an index, which is now recognized worldwide and provides orientation. The price level is currently in the upper 20% segment of the prices of the last 5 years.
