Milk production figures provided by Eurostat and the Agriculture and Horticulture Development Board of the United Kingdom were recently updated with values spanning through March 21. Highlights from the updated report include:
• EU-27+UK milk production volumes increased 0.3% on a YOY basis throughout Mar ’21, reaching a record high seasonal level. The YOY increase in EU-27+UK milk production volumes was the first experienced throughout the past three months.
• March 21 YOY increases in milk production were led by Ireland, followed by the United Kingdom, while production volumes declined most significantly from the previous year throughout Germany
and France. Overall, just 12 of the 28 countries experienced YOY increases in milk production throughout the month, despite total EU-27+UK production finishing slightly higher. 

Milk production in the United States during April totalled 19.3 billion pounds, up 3.3% from April 2020.
The University of Wisconsin-Madison has released the latest market outlook, which expects feed costs to remain high and unstable and foresees some drought conditions to migrate to the Midwest from the West Coast. The outlook is expected to impact the market sentiments fuelling further volatility in the market.

Milk production in April 2021 was +11% higher than in April 2020. Milk prices increased in February 2021 by 8.2% to 34.98 c/kg compared to January 2021, and the price was 9.9% higher than in February 2020.
Fonterra has raised the price it pays farmers for milk for the upcoming season, following strong demand for its dairy products in China and higher milk prices.

Image source: Eurostat

Global Demand

China: Dairy commodity prices have remained well supported in recent weeks as significant Chinese demand continues for butter/butter oil, SMP, WMP and whey powder importer in Jan-March 2021, pushing the global dairy prices to go higher.
New Zealand export data for April suggests that Chinese imports most likely would remain strong in May and June, with combined exports to China up 24% YoY despite total New Zealand exports being down 8%.


LATAM: Mexican Milk Giant Lala Plans to Go Private After Shares Slump – Lala said in a stock exchange filing late Friday that a group of equity owners were planning to pay as much as 20% more than recent prices for all outstanding shares. According to the filing, the estimated purchase price would be around 17.36 Mexican pesos ($0.87) or 37% less than its IPO level. Shares traded as high as 16.88 pesos on Monday before settling down to 16.51 pesos. The purchase process requires regulatory and shareholder approval and could take into early next year.
CIS: Following a severe drought, Romania’s grain production is expected to grow by 28% in the 2021-22 marketing year based on recent rainfall improving soil moisture.
North America: IDFA, USDEC and NMPF have been calling for full enforcement of Canada’s trade obligations under USMCA.
Saputo expands non-dairy cheese and value-added ingredients with two acquisitions. The Montreal-based dairy processor and cheese manufacturer said Tuesday it had completed the acquisition of Bute Island Foods, a manufacturer, marketer and distributor of vegan cheese.
Oceania: Australia is poised for a second consecutive bumper wheat harvest as farmers plant grain in near-perfect growing conditions, easing some of the global supply concerns, which lifted world prices to multi-year highs last month.
China: China to be nearly self-sufficient in wheat and rice by 2025. The country will remain heavily dependent on soybean imports. This will give China enough access to forage for dairy.
India: Procurement of Wheat in ongoing RMS2021-22 is going on smoothly in Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan, Gujarat, Jammu, Kashmir and Himachal Pradesh at MSP. A bumper crop ensures enough forage availability for dairy animals as well.

Author Prashant Tripathi

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