Spurred by higher prices, milk production in the 28-member European Union was up 3.8 percent in May with January-through-May deliveries well-above year-ago levels. Dairy Market News reports the Netherlands and Germany are nearly 4.5 percent higher, France is up 6 percent, Irish production is 8.5 percent above the same period in 2013 and the U.K. is up nearly 12 percent. In Eastern Europe production in Poland in May was up nearly 8 percent, the Baltic States are more than 12 percent above May of last year and Romanian production is up more than 17 percent.
Of particular interest: U.S. dairy exports increased 15 percent from January through May with butterfat exports up 84 percent compared to the same period in 2013. Dermot Carey, senior vice president for Darigold Incorporated recently told a Wisconsin forum we still produce more milk than we consume so the export market is very important. He noted his company exports around 42 percent of the milk it takes in daily. That makes people a bit nervous about that difference between the global prices and domestic prices. He also told the group that while China’s demand has slowed a bit they still import a lot of dairy as their milk production is hobbled by the lack of clean water. Cheese Market News says Carey told the attendees, “People are using our futures markets to price exports and the futures market also can indicate what’s to come. We watch it for clues.”
In Oceania, the new production year is just getting started, most dairy farmers have signed contracts for the new season with beginning prices above the last several years.