Report: EU Dairy Markets, Situation and Outlook January – April 2013

Special report produced for CLAL by Erhard Richarts, Dairy Market Consultant, Chairman of IFE (Institut für Ernährungswirtschaft e. V., Kiel)

Highlights:

  • Milk production in the EU will stay below 2012 volumes until spring and might later revert to expansion again. Growth in other parts of the world is also reduced.
  • With reduced milk supplies and increased requirements for cheese manufacturing and fresh markets the availability of milk for the production of the exportable commodities will be lower than in 2012 until May. After that time, it could be ahead of the year 2012, but annual totals will hardly exceed those of 2012.
  • In the markets of the commodities butter and skim milk powder only seasonal price reductions are possible in spring, but no cyclical turn and no buildup of year-end stocks is in sight over the year 2013.
  • The recovery of the Euro rate will limit the potential for rising commodity prices in 2013. But in general dairy product prices will move above the 2012 levels, including milk prices paid to farmers.

Read the full report here

Milkproduction.com

Milkproduction.com