Global milk supply crashes

It is not just in Ireland where milk supplies have eased with many of the big players across the globe alos reporting a drop off in milk supply.

Jack Kennedy

27 July 2016

Milk supplies are easing.

Global milk production levels have dropped amid continued weakened markets.

UK milk deliveries for the first two weeks of July averaged 37.2m litres per day, down 4.2m litres/day (10.2%) on the same period last year.

Similarly, the latest figures for Australian milk supply show it is down 2% for the full year but down 8.8% for the month of June.

Wet cold weather in Uruguay and South America and low prices are also reducing supply as autumn weather is making a real impact. On the back of reduced European and Australian supply, spot milk prices have increased, with the latest Dutch price (24 July) at 27c/l and the latest Italian spot price at 33c/l.

Closer to home, depending on what processor you talk to, our survey results showed June milk supplies are up between 2% to 6.5% on last year. However, processors would say that in more recent weeks even Irish supplies have been slower than last year.