EU Milk Production forecast to grow in 2014

Milk production in the EU could increase by more than 1% in 2014, suggests the European Commission in its latest Outlook report.  Relatively high milk prices, induced by strong global demand and tight world supplies, and an improvement of the weather conditions have triggered a significant rebound in milk production since the summer. This higher availability in milk should allow grasping export opportunities on the world market especially for cheese. Global demand has remained strong and kept prices for dairy commodities near record high levels during summer. Milk production restricted by high feed prices in 2012/13  According to Eurostat data, milk deliveries in the EU-27 have decreased by 0.8% during the 2012/13 quota year.  This resulted in total milk production being 6% below quota, which allows for significant increases in production this season for certain countries.   Milk production in 2012/13 was restricted due to the high feed prices in 2012 as well as to the wet and/or cold weather conditions in winter and early spring in major milk European producing countries.  Conditions improve for 2013 This season current good market conditions have accelerated milk production and if this trend continues and weather conditions remain favourable milk deliveries in 2013 could slightly increase compared to 2012 (+0.2%). The increase will take place in the EU-15 while milk deliveries may decrease by 0.7% in the EU-N13 mainly because of a decline in Czech Republic and Hungary while Polish production could remain stable. Milk production growth expected in 2014 In 2014, if this pace continues milk production in the EU-28 is expected to increase by 1.1%, recovering from lower supply especially in the first half of 2013. There will be no furth