Global milk production remains low this year

This is reported by the British market agency AHDB today (Thursday, October 20). However, the forecasts for the various areas have been slightly adjusted compared to the first part of 2022, the organization explains. For example, milk production in Oceania, and New Zealand and Australia in particular, is lower than previously expected. Despite the relatively high milk prices, milk production has been under pressure for some time due to various factors, including unfavorable weather conditions resulting in poor grass growth, a shortage of labor and high input costs for, among other things, feed and fertilizers. 

For New Zealand, a decline in milk production of 3% over this calendar year is therefore taken into account. The Australian milk pool is expected to shrink by 4,4% this year. The milk supply in Argentina is also declining compared to the first part of 2022. However, AHDB expects the milk balance for this country to end in a positive position for this country with a growth of 0,7%. For the European Union, excluding of course the United Kingdom, the organization predicts a decline in milk production of 0,5% over 2022. This means that the EU is in line with the global average. For the United Kingdom, a decrease in milk supply is expected by 1,1%

Finally, milk production in the United States is growing slightly this calendar year by 0,3%. This means that production has increased considerably in recent months, as a contraction of 0,1% was expected a few months ago. Dairy farmers in the United States have expanded their dairy herds, attracted by the favorable market prospects, taking into account a further improvement in production until the end of the year.