WORLD MILK MARKET

Abstract

As a result of this year’s record heat, certain European countries, as well as the USA, are reducing milk production. There is a shortage of raw materials in the markets of these countries. There is also a shortage of raw materials for Australia’s processing plants. In the south of Europe, milk production is reduced due to the record heat in July. Drought and heat negatively affected the productivity of cows. European cheesemakers lack raw materials, and the amount of cheese stocks in warehouses has decreased significantly. However, there were rains and coolness in the northern regions of Europe, which contributed to an increase in the number of pastures and, accordingly, to an increase in the amount of milk yield in the annual section. Such countries of Central and Eastern Europe as Poland, the Czech Republic and Romania have increased the volume of milk production since the beginning of the year. Despite the negative impact of the heat, the volume of milk production in the EU in 2023 is slightly higher than last year. During the first five months of 2023, 62 million tons of raw milk were produced in the EU, which is 0,7% more than in the previous year. The reduction of milk production in certain countries is influenced not only by weather conditions, but also by negative market conditions. In June, such leading European countries producing dairy products as Germany, Italy, Ireland, the Netherlands and Poland collectively produced 7,19 million tons of raw milk and reduced milk production by 6,34% compared to May, but increased milk production by 0,49% against June 2022. These countries produce 57% of raw milk in the EU. In the context of the recession, the demand for dairy products weakened both in the EU domestic market and in foreign markets, in particular in China. Therefore, producers are forced to adjust the number of cows and adapt to new market conditions. According to the results of the third quarter of 2023, a reduction in the volume of milk production in the EU is possible.