EU: Short-term prospects for dairy products

Dairy consumption in the European Union (EU) is expected to remain stable this year, despite an anticipated small reduction in milk production. The EU's Short-Term Agricultural Outlook said that cow slaughter is likely to increase in response to falling raw milk prices, although this could be partially offset by increased milk production. Despite a slight drop in milk deliveries from the EU (-0.2%), processing availability can still be kept stable thanks to the higher fat and protein content of milk. The cheese and whey processing stream is expected to be favored by the industry due to the EU's export potential and relatively stable domestic cheese consumption. Butter and skim milk powder production may decline due to higher than normal stocks (assumed from 2022), which may partially cover the increase in exports and domestic use. Overall, the report suggests that EU consumption is likely to face some shifts in consumer preference towards lower quality products, impacting value ...