April 21, 2022

 

Worldwide milk supplies set to remain flat this year

 

 

Worldwide milk production increased by just 0.8% in 2021, and projections for milk output in 2022 is expected to remain flat, lower than the January prediction of a 0.6% yearly growth, the UK Agriculture and Horticulture Development Board (AHDB) reported.

 

UK milk production is expected to drop by 0.9% year-on-year. Milk output in the EU, New Zealand, and the US are expected to remain in line with 2021. 

 

Farmers are not motivated to increase production because of increased input costs, which have been exacerbated by the present situation in Ukraine. This has offset higher milk prices. Other issues include labour shortages, transportation delays, and bad weather.

 

With limited expansion in global milk supplies, prices are expected to stay stable, but AHDB said there is potential for prices to climb further if demand increases.

 

AHDB also said buyers may potentially lower their purchases as a result of delivery delays, as certain security stockpiles are used up. These could stifle additional milk price hikes.

 

-      UK Agriculture and Horticulture Development Board

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