Farm Ireland
Independent.ie

Wednesday 7 December 2016

New Zealand and UK dairy supplies continue to fall

Published 10/10/2016 | 14:13

Analysts in New Zealand are predicting that supply volumes will continue to ease. Picture: Fonterra.
Analysts in New Zealand are predicting that supply volumes will continue to ease. Picture: Fonterra.

Global milk supplies continue to respond to poor prices

  • Go To

The most recent dairy supply figures from New Zealand and the UK show that supplies are down in both countries.

Figures in the UK for its October supplies, from the AHDB, show that UK daily deliveries for the two weeks ending 1 October averaged 35.8m litres/day - some 3.2m litres/day (8.1%) lower than the same period last year.

Daily deliveries were 1.7m (4.6%) lower compared with the three-year average.

The figures come just days before UK dairy farmers' deadline for the next round of the EU’s milk reduction production scheme - 12 October.

Milk Supplies

Meanwhile, August figures for New Zealand milk supplies show that August (its spring) milk production is down in volume by 2.7% on last year.

The figures were released by the Dairy Companies Association of New Zealand. 

Also Read


Analysts in New Zealand are predicting that supply volumes will continue to ease. 

Fonterra Chairman John Wilson said in September that global milk supply has continued to reduce and demand has remained stable over the past 12 months.

“Milk production in key dairying regions globally is reducing in response to low milk prices. Milk production in the EU for 2016 is beginning to flatten out and our New Zealand milk collection is currently more than 3pc lower than last season."

EU milk supplies for June and July are also back this summer and between one fifth and one third of Irish milk suppliers are estimated to have signed up to the EU's Voluntary Milk Reduction Scheme.

Rabobank has predicted that European supplies will be back by 2pc in the second half of this year and by 0.5pc in early 2017. 

Online Editors