Inside: Dairy Market
Divergent milk supply on the world market
The Dutch milk supply for August again shows a gap with last year. Production in 2017 is somewhere between the 2016 level and the 5-year average. What exactly does this lead to? Subscribe to 'Milk & Feed Pro'.
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In August, Dutch dairy processors collected a total of 1.182.522 tons of milk. That is a minus of 1,65%, compared to the same month in 2016. Compared to the 5-year average, milk receipt is still more than 5% ahead.
Unloading since July
It appears that milk production in 2017 will no longer be able to keep up with last year's level. In the first six months the milk supply was still relatively stable. However, since July the milk supply has had to be released. The consequences of the phosphate reduction plan contribute to this, among other things. Production is also lagging behind in other European countries this year.
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The milk supply is below last year's level.
Lots of milk from Texas
In the US, dairy farmers are actually speeding up, as milk supply figures show. According to the USDA (the United States Department of Agriculture), American milk production in August amounted to 8.505.500 tons. This is more than 2% more than last year and almost 1 million tons more than the 5-year average. With the exception of February, the milk supply is structurally higher than last year.
It is striking that production in California, the largest dairy state in the United States, actually produces 0,7% less milk. The growth of 10% in Texas (the fifth largest milk lake) is striking and by far the largest. Gains are being made in medium-sized regions, such as Michigan, Minnesota and Pennsylvania.