Market growth large enough to absorb extra production

Published 18 January 18

Average daily deliveries of milk from the key producing regions were up almost 4% in November in comparison to last year. Continued growth in production within the EU-28, along with the seasonal growth in New Zealand, is pushing up global supplies. However, year on year comparisons are a bit distorted due to the impact of reduced deliveries in the last quarter of 2016.

Comparing global milk supplies on an annual basis shows growth of roughly 3.5 billion litres, or 1.2%. FAO estimates suggest demand will continue to grow by 1.7% to 2.1%, so the annual increase in milk production should not create a large imbalance in the global market.

Demand Growth Sufficient Graph