GLOBAL – Markedly different outlooks have been given for milk production growth in the US and Europe for the coming months.
European milk production is forecast to slow from now into 2015, while US production is expected to continue to rise 3.3 per cent.
Cheaper cereal is benefiting both US and EU producers, although the remaining quota restrictions will hamper deliveries in some European nations, said a recent European Commission report.
This will reign in production, possibly below 2013 levels if production slows to a 1.6 per cent growth rate.
Cereal prices are supporting both US and EU production but US farmers are being helped by strong milk prices, which look set to continue for 2014.
Strong domestic demand is also part of the US markets picture, said analysts at UK levy board DairyCo.
DairyCo added: “Production is likely to continue to increase in 2015, despite lower predicted milk prices, as a result of expected lower feed costs.
“It is also anticipated that the yield per cow is likely to increase, which could lead to even higher US deliveries in 2015.”
TheCattleSite News Desk
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