Archive: Key exporting countries lower milk production growth forecasts

Published 11 February 15

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Milk production across the globe appears to be slowing in the wake of lower milk prices. Forecasted growth in milk production for 2014/15 has been lowered for both the United States (US) and New Zealand (NZ).

While milk production in both areas is still forecast to grow, lower milk prices and the impacts of dry weather (NZ) and falling yields (US) are expected to slow down the rate at which production expands.

In NZ, forecasted growth for the 2014/15 season (June-May) has been reduced from 3.5% to 3.0%. The USDA meanwhile has marginally reduced its growth forecast for 2015 to 2.7%. In the EU, looming superlevy fines are expected to restrict supply growth for the remainder of the 2014/15 year. However, any upturn in production post-quota is likely to be curbed by lower farmgate prices.

global milk supply growth