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Inside Milk

Milk production in China will rise sharply in 2021

4 January 2021 - Wouter Baan

The milk supply in all major production regions in the world is increasing this year. Production is growing very fast, especially in China...

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For China, a growth of 4,7% to 35.7 million tons is forecast. This is the highest growth rate since 2014. Milk production in the Asian country also increased considerably last year, by more than 3%. China itself claims even greater growth.

Over the first 3 quarters, the Chinese Ministry of Agriculture reported a growth of 8% compared to production in the same period in 2019. Dairy farming in China is supported by government policies and will continue to be so in the coming years. There are many dairy cattle, especially in the autonomous region of Inner Mongolia, and the companies are said to be growing rapidly.

India and EU
In India, by far the largest milk producing country in the world, production is also reported to increase by more than 2% this year to 199 million tons. Nevertheless, India's influence on the world market is limited, because the country hardly exports dairy products. In the European Union, production in 2021 will amount to 162,8 million tons, which represents a growth rate of less than half a percent. The forecast is in line with the long-term estimate made by the European Commission in December. Brussels predicts that milk production will increase by 2030% annually until 0,6.

USA and Russia
In the US itself, production will increase by 1,6% this year to 102 million tons, meaning growth is leveling off somewhat compared to last year. Despite the corona crisis, milk prices in the US are not disappointing. This motivates dairy farmers to keep more cows. For Russia, the fifth largest milk producer in the world, the USDA predicts a growth of 0,5% to 31,8 million tons. This is the lowest growth rate since 2016.

Oceania
For New Zealand, the 6th largest milk producer in the world and a dominant exporter on the world market, growth of 1% to 22,2 million tonnes is expected. In neighboring Australia, the USDA predicts an increase of more than 3% to 9,4 million tons. This has almost canceled out the rapid decline in production in 2019, as a result of the extreme drought.

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