Will EU Milk Production Continue its Decline?
The European Union has been encouraging dairy producers to cut milk production for months. It’s working.
According the EU Milk Market Observatory, milk production fell 1.5% in July. That’s in addition to another roughly 2% decline in June. A drop in July milk collections versus 2015 was reported by 19 European Union Countries. And recently, the EU dairy commission dropped its production forecast for the year and expects volume to increase less than 1% compared to last year.
Part of that yearly reduction relies on the EU production reduction scheme, which was announced in August. More than 1,800 UK farmers enrolled in the program, which will pay producers to make less milk.
Although the largest milk production decline is anticipated to be felt in Germany, more than 13,000 farmers from France have also enrolled in the program. Reduced production should help restore supply and demand balance in Europe and will therefore improve milk prices.
For more information, watch the video from AgDay TV.
EU Milk Production Drops