July 31, 2024

Drop in Argentina and New Zealand's milk production, according to USDA-FAS

The US Department of Agriculture's (USDA) Foreign Ag Service (FAS) said two of the top five exporters had a drop in milk production.

Argentina's production fell 7.4% and New Zealand was down seven-tenths of a percent. 

Meanwhile, Australia's production rose 3.3% while the European Union was up one-tenth of a percent and the United States rose two-tenths of a percent. 

The EU still produces the most milk with 102.9 million tonnes projected this year.

Favorable weather and good pasture conditions are leading to Australia's increased production.  The USDA expects the country to produce 8.8 million tonnes of milk, all while adopting technology and feed management practices to become more efficient.

The FAS also stated that Argentina's dairy industry is grappling with challenges brought on by its economic crisis.  Along with the 7.4% year-over-year decline in milk production, Argentina has seen a 13% reduction just since January when compared to the first six months of 2013.  Domestic consumption is down, but the country's exports are more competitive after its currency was devalued.

 - Brownfield