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USDEC looks at European milk production

The U.S. Dairy Export Council (USDEC) recently released a report for its members outlining what European milk production will do now that the quotas have come off.  USDEC interviewed milk producers, processors and organizations in the six EU countries most likely to produce the most milk.

The report says there will not be an immediate surge in EU milk production, longer-term European production will increase 11 percent by 2020.  Ireland, France, the Netherlands, Denmark, Germany and Poland are expected to account for 76 percent of increased milk production.

Much of the new milk will go into cheese and other exportable commodities.  Specifically the report projects cheese production to increase by 660,000 metric tons by 2020; 315,000 metric ton increase in whey; 231,000 metric ton increase in butter; 189,000 metric tons of skim milk  powder and 151,000 more metric tons of whole milk powder.

USDEC says the global market will become more competitive and more volatile however: “research concluded that continued rising market demand would absorb increased EU volumes and still leave ample opportunity for U.S. suppliers in nearly all sectors.”

Read more from USDEC here: