Inside Milk
European butter production to grow in 2021
The European Commission foresees a growth in the production of butter and skimmed milk powder for 2021. What is the basis for this and what other expectations are there?
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European butter exports reached a historically high level in 2020. In total, approximately 201.500 tons of butter were exported. That is no less than 15% more than in the previous year.
The prospects for this year are not bad either. The European butter stock inventory is not high and the European Commission expects butter consumption to grow by 1%. Global demand for European butter is expected to continue to grow and exports are forecast to be 4% higher this year than in 2020. These developments would boost production growth in Europe, which is expected to be 1,3% higher than last year.
Skimmed milk powder
It is also estimated that the production of skimmed milk powder is experiencing an annual increase. Production this year is expected to be 3,5% higher than last year. The increase is driven by strong demand from Southeast Asia. Last year, total European exports fell by approximately 12%, probably due to limited availability. The Commission estimates that exports from Europe could amount to 2021 tonnes in 880.000.
Full milkpowder
Last year, global demand for whole milk powder remained strong, with China in particular having a large share. Australia, New Zealand and Europe were major suppliers. The total European production growth of whole milk powder last year is estimated at approximately 2%. For 2021, European production is expected to remain fairly stable with a growth of only 0,5%.