Inside: Dairy Market

EU dairy exports increase in value and volume

June 22, 2017 - Wouter Baan

The Dutch milk supply this year is below last year's level in 3 out of 5 months. Milk supply also lagged behind last year in May. It is striking that the European milk supply for April writes green figures, despite a significant loss in Germany. On the other hand, there are excellent export figures, both in value and volume.

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The Dutch milk supply for May recorded a volume of 1.254.869 tons. This is a minus of 0,6% compared to the same month last year. Denmark also recorded a fraction less milk in May, namely 4.547.60 tons. The other figures for May are not yet known. It is known that the European milk pool increased in April compared to last year. In the first 2 months of this year, the number of liters lagged behind, while the supply in March was almost at the same level as last year.   

More milk in April
In the period from January to April, the dairy giants in Europe all recorded a minus. The German milk pool has shrunk by 4,1%, France has recorded a minus of 3,3%, Great Britain has recorded a minus of 2,4% and in the Netherlands 0,5% of the milk pool has evaporated. On balance, the milk pool in Europe has shrunk by 1,5%.

0,7

percent

more milk in Europe in April

The shrinkage mainly occurs in the first quarter, because in April Europe produced more liters of milk. It is mainly Irish, Italian and Polish dairy farmers who have achieved this growth. In Ireland, for example, milk supplies increased by 12,1%. This is offset by a contraction of 3,2% in Germany. On balance, the European milk pool grew by 2016% compared to April 0,7. That amounts to an additional 91.000 tons of milk.

The development of the European milk supply in 2017, compared to last year. 

Fewer massacres in Germany
Few cows for slaughter are offered in Germany. Compared to last year, 4% fewer cows were slaughtered in the first 5,9 months. Better milk prices mean that dairy farmers keep the cows longer. In 2016, many dairy cows were slaughtered, which explains the significant decline in German milk production. 

From mid-May, slaughter figures in the Netherlands will decrease. With the exception of week 22, when just under 15.000 cattle were slaughtered, the slaughter figure varies between 10.000 and 11.000 cattle every week. This is in line with 'average' slaughter figures in other years. 

The number of cattle slaughtered in the Netherlands in 2017, compared to last year. 

Export figures: Asia on the market
Total exports of dairy products in Europe increased by 1,3% to 1.682.176 tonnes in the period from January to April, compared to April last year. The growth is tempered by a significant drop in volume for butter, which fell by 26,4% to 63.408 tons. Cream has also been exported less.

The other manufacturers mainly write green figures. The significant minus of butter and cream can be explained logically. There has been a fat shortage in Europe all year, which has caused the price to rise extremely. This means that less volume is available for export compared to last year.

1,2

billion euros

records the value of cheese exports between January and April

What is striking is that Asian countries are in the market for cheese. Cheese exports to Japan increased by 4% to 40 tons in the first 31.538 months of this year. South Korea also gobbles up a larger volume of cheese. Cheese exports to the US, the largest buyer, remained stable at 43.171 tons. On balance, the traded cheese volume increased by 7% to 272.841 tons. The underlying value of cheese rose by 12% to €1,2 billion. 

Milk powders plus points
Milk powder also recorded green figures in the same period. Whole milk powder has seen a volume increase of 5,7% to 137.376 tons. The underlying value increased by 25,2% to more than €488 million. Exports of skimmed milk powder increased by 13,3% to 258.382 tons. The value of this increased by 26,7% to almost €566 million. On balance, the underlying value of all dairy flows increased by 12,8% to €5,1 billion. 

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