Global milk production rising

Big dairy exporting countries have raised their milk production in the last year, with the European Union and the United States experiencing the largest growth in exports.

Fonterra’s latest Global Dairy Update reports that EU and US export growth rates are tailing off, while New Zealand’s have increased in recent months.

Global demand for dairy products has fallen in response to oversupply, while China is still working through its stockpile.

Nevertheless, the United States Department of Agriculture says underlying demand from China will continue to be driven by rising incomes, growing urbanisation and expanding population.

While export growth from the EU dropped, it still remained 12 per cent ahead in May 2014 compared to May the year before.

New Zealand’s export rates showed an upward trend in April and May this year, at 10 per cent growth.

Milk powder exports from New Zealand, the EU, Uruguay and the US were mainly responsible for the global export growth.

Cheese export rates fell in May for New Zealand, the EU and Australia.

Cheese exports to Russia from the EU have fallen 11 per cent in 2014, although Russia has now banned all EU cheese imports.

New Zealand’s milk production in July reached 24 million kilograms of milksolids, 2m kg up on the same 2013 period.

However, ASB economist Nathan Penny said he would not read much into the July figures, since production was traditionally at its lowest then.

Production in July last year was only 1 per cent of total production for the year, he said.

Photo: REUTERS Udder pleasure: A farming couple milk their cows by hand at their alpine dairy at Alpe Albona, Austria. Big dairying countries have raised milk production this year, with both the European Union and United States exporting more dairy products.