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October 29, 2008

 

EU dairy productions fall in 2008

 
 

After the peak in mid-2007, domestic prices for raw milk and export prices for dairy products are plummeting in 2008.

 

Lower prices of milk and increased costs of agricultural inputs make milk production and dairy processing less profitable.

 

Despite low prices, milk production in the EU-27 is expected to increase in 2008 due to a growing milk quota and higher demand for dairy products. However, the increase in production is not expected to continue at the same rate in 2009 due to the fall in raw milk and dairy product prices in the world market.

 

In the spring and fall of 2008, farmers in Germany, Austria, France, Czech Republic, Poland and Bulgaria protested against the fall in milk prices and higher cost of inputs.

 

European dairy herds continue to decline, however there is continued genetic improvement and higher yields from cows and a general trend toward greater coalition of the dairy industry.

 

Until the end of October 2008, the Commission did not interpose on the internal or external dairy market.

 

However, the situation may change towards the beginning of 2009 as growing supplies and lower competitiveness of European dairy products on the world market and stable domestic consumption will put strong pressure on the EU authorities to build intervention stocks, subsidise consumption or re-introduce export refunds.

 

Country:
 EU-27
Commodity:
Dairy, Milk (1000 Head / 1000 MT)
 
2007
2008
2009
 
USDA Official
Post Old
(EU-27)
Post New
(EU-27)
USDA Official
Post Old
(EU-27)
Post New
(EU-27)
USDA Official
Post Old
Post New (EU-27)
Calendar Year Begin
01/2007
01/2008
01/2009
Cows In Milk
24344
24344
24178
24000
24000
23951
 
 
23950
Cows Milk Deliveries to Dairies
132600
132600
132604
133670
133670
134000
 
 
134400
Other Milk Production
4125
4125
4270
4150
4150
4259
 
 
4260
Total Milk Production
136725
136725
136874
137820
137820
138259
 
 
138660
Extra EU25 Imports
7
7
12
10
10
6
 
 
5
TOTAL SUPPLY
136732
136732
136886
137830
137830
138265
 
 
138665
Extra EU25 Exports
155
155
156
160
160
170
 
 
150
Fluid Use Dom. Consumption.
34000
34000
33334
34000
34000
33569
 
 
33645
Factory Use Consumption.
102577
102577
103396
103670
103670
104526
 
 
104870
Feed Use Dom. Consumption.
0
0
0
0
0
0
 
 
0
Total Dom. Consumption
136577
136577
136730
137670
137670
138095
 
 
138515
TOTAL DISTRIBUTION
136732
136732
136886
137830
137830
138265
 
 
138665
Source: FAS EU offices
 
 

 

Country:

EU-27

Commodity:

Dairy, Cheese  (1000 MT)

 

2007

2008

2009

 

USDA Official

Post New
(EU-27)

USDA Official

Post Old
(EU-27
Post New
(EU-27)

USDA Official

Post Old

Post New
(EU-27)

Calendar Year Begin

01/2007

01/2008

01/2009

Beginning Stocks

0

0

0

0

0

 

 

0

Production

6870

6760

6940

6940

6840

 

 

6870

Extra EU25 Imports

105

93

110

110

85

 

 

85

TOTAL SUPPLY

6975

6853

7050

7050

6925

 

 

6955

Extra EU25 Exports

600

534

620

620

510

 

 

510

Domestic Consumption

6375

6319

6430

6430

6415

 

 

6445

Other Use, Losses

0

0

0

0

0

 

 

0

TOTAL Dom. Consumption

6375

6319

6430

6430

6415

 

 

6445

Ending Stocks

0

0

0

0

0

 

 

0

TOTAL DISTRIBUTION

6975

6853

7050

7050

6925

 

 

6955

Source: FAS EU offices

 

For the full USDA report, please click here
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