EU dairy production to increase by 0.3% this year

The USDA forecasts a slight increase in milk supplies in the European Union for 2021, driven by stable domestic and global demand. EU dairy production is expected to rise, with increases in cheese, butter, and whole milk powder production. US consumption of cheese and butter is projected to rise, while liquid milk consumption is expected to remain stable. EU milk prices and prices for dairy products like cheese, butter, and NFDM have increased compared to the previous year. Despite challenges such as higher prices and supply chain disruptions, cheese exports are expected to grow due to strong global demand. However, PMP exports are expected to decline due to reduced demand from Nigeria. The dairy market was disrupted by COVID-19, leading to a temporary private storage of cheese, butter, and NFDM in the EU. Dairy production in the EU-27 decreased in the first two months of 2021, with the number of dairy cows also decreasing. In the UK, milk supplies continue to increase despite a decline in dairy herds.