Milk production across the five key dairy exporters (EU, US, New Zealand, Australia and Argentina) is forecast to increase 1.5% next year, bringing global supplies to around 289 billion litres, according to AHDB Dairy.
The forecast is in line with the FAO's prognostication of 1.7% growth in processed dairy product consumption for 2018.
The 28-member EU bloc, which is the biggest producer, is expected to see good growth resulting from rising milk prices and yield gains. Production is thus seen to grow 1.4% in 2018.
Yields gains are also set to benefit the US, whose production is expected to grow 1.8% in 2018.
New Zealand production is forecast to grow 0.5% as the size of the dairy herd is expected to
have additional 25,000 head and normal weather patterns are expected to return after this year's wet spring.
Favourable conditions for pasture growth, improved farm gate prices and herd rebuilding are expected to drive growth in Australian milk production next year with the USDA expecting 2.2% growth after a difficult two years.
Australian milk production next year is expected by the US Department of Agriculture to grow 2.2% after two difficult years. This forecast considers favourable conditions for pasture growth, improved farm gate prices and herd rebuilding.
The dairy division of the UK Agriculture & Horticulture Development Board cited the Food and Agriculture Organisation's estimate for Argentina's milk production growth at 1.3% yearly over the medium term as the sector recovers from production setback due to poor weather and high inflation in 2017, which accelerated concentration of farming, with smaller farms pushed out of the market.