Sustained demand for EU dairy products, favourable weather conditions and the current dairy price environment are likely see EU production milk production increase by 1% in 2019 and 2020.

The European Commission’s short-term outlook for dairy says that the growth in milk production in the EU will also be buoyed by lower supplies in its main competitors.

Milk production is forecast to increase in Ireland, Poland, Denmark and the UK.

Irish milk production was up 11.4% in the period of January to April 2019 compared with the same time last year, EU Milk Market Observatory (MMO) figures show.

Meanwhile, production in France and Germany is expected to remain stable.

The Commission issued a health warning with the increase in production, saying that to some extent, growth could be limited by processors’ demand, focusing more and more on adding value than on volume.

Milk consumption

The continued decline in drinking milk consumption in the EU is driving a production drop in fresh dairy products, according to the Commission. This drop is expected to be in the region of 0.2% this year. Currently, drinking milk represents 25% of dairy domestic use.

In contrast, EU drinking milk exports grew in January to April, particularly to China with exports up 24%.

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