Global milk collections rose by about 3.9% in March, with notable increases in all major production regions, according to Ornua.
Ornua’s latest Global Dairy Market Report shows that collections across the EU-27 rose 4.7% in February and are expected to increase by a further 4.1% in March.
However, milk production in Ireland It fell -0.7% in March, but this was far from the strong base of the previous year.
March milk collections in Germany rose 7.0%, setting another monthly record.
Output in France is expected to rise by 5% in March, although weekly data suggests growth may slow.
The Netherlands recorded a 6.1% increase in collections in March from a lower baseline, while Poland saw a 3.2% increase in collections during the month.
Flows are said to have been “strong” in the UK, but the pace of this growth appears to be slowing.
Milk groups
The report shows that milk supplies remain strong in the United States, rising 2.3% in March.
Favorable conditions and strong milk prices have helped increase production in New Zealand.
Despite strong production in Australia in March, Ornoa noted that the dairy sector there was cautious due to high input costs.
In Argentina, supply continues to grow with favorable weather conditions and increased productivity per cow.
The report noted that government figures from China indicated a 3.4% increase in milk supplies in the first quarter of the year.
Ornoa
Ornoa said growth in global dairy supplies may have peaked, but “is likely to remain elevated for longer than previously expected.”
“Despite strong supply levels, a combination of strong retail sales and exports, coupled with ongoing conflict in the Middle East, pushed European commodity prices higher in the first quarter.
“However, the subsequent rise in energy prices has raised concerns about future demand, especially after a period of strong exports,” the report said.
“Even in the most optimistic scenario, energy prices are likely to remain high for several months,” Ornoa added.
In her market forecasts, Ornoa indicated that cheese and butter prices may decline further in the coming weeks, but noted “early signs of stabilization.”
The report said that the prices of skim milk powder may rise further in the short term.
“Despite the prevailing downward trend in the market, demand has remained strong, and European prices are competitive compared to both global markets and historical averages.
“Although concerns about milk supplies and uncertainties about future demand suggest caution about potential price increases is warranted,” Ornoa said.
