How many liters of milk will be added to the world market this year?

Global milk production will increase by 1,4 percent this year. That is what the United Nations Food and Agriculture Organization (FAO) expects. The growth is mainly realized in parts of Asia, the Middle East and the US.

In short, the FAO expects production to increase in Asia, the Middle East and the Americas. In Europe and Africa, the milk supply is expected to stagnate. Less milk is expected in Oceania, especially in Australia. The growth in Asia and the Middle East has hardly any effect on world market prices, because these regions have traditionally hardly played a role.

Slight growth in export regions
In exact percentages, the FAO expects 3,9 percent more milk in India. This will expand the milk lake in India to 166,6 million tons. The US is said to be producing 2 percent more milk. On balance, the milk supply in the main exporting regions is growing by approximately 0,6 percent. This is equal to 1,6 billion liters of milk.

Because the exporting regions are heading for a slight growth, import growth is necessary for a market balance. China and Australia are expected to import more, due to a shrinking milk supply. Russia, Mexico and the Philippines are also likely to purchase more dairy. On balance, the FAO expects the traded dairy volume to increase by 1 percent.

Less demand for whole milk powder
With regard to the trade in dairy products, the demand for whole milk powder is expected to weaken. On the other hand, there is an increasing demand for butter, cheese and skimmed milk powder. It must be stated, however, that the intervention stocks of skimmed milk powder in Brussels are depressing sentiment on the dairy market. There are still about 350.000 tons of skimmed milk powder stored in intervention.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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