EU short term outlook: Tight stocks support firm prices

The European Commission expects milk deliveries in the region to increase by 0.5% in 2024 as per the latest EU short term outlook. This is slightly higher than the 0.4% increase forecast in the Spring outlook. Despite weather challenges and declining herd size, the availability and quality of grassland and fodder supported an increase in deliveries. However, varied movements were seen in production across different countries. According to the latest data available, in July deliveries picked up in France, Italy, Poland, Spain whilst it fell in Ireland and Netherlands following the impact of wet conditions. The supply of milk solids is expected to be stable. Raw milk prices stabilised 17% higher than the 5-year average as of August 2024. Grasslands are in average condition in western Europe and weather conditions remain varied across regions. The wet spring in Ireland affected groundwork whilst hot and dry conditions in eastern and southern Europe had impact on pasture growth. On a ...