News

Foreign milk production strong in Australia, down in Argentina

USDA’s Foreign Ag Service says two of the top five exporters had a drop in milk production. 

Argentina’s production fell 7.4% and New Zealand was down seven-tenths of a percent.  Meanwhile, Australia’s production rose 3.3% while the European Union was up one-tenth of a percent and the U.S. rose two-tenths of a percent.  The EU still produces the most milk with 102.9 million tons projected this year.

Favorable weather and good pasture conditions are leading to Australia’s increased production.  USDA expects them to produce 8.8 million tons of milk, all while adopting technology and feed management practices to become more efficient.

Although the EU dominates cheese exports, sixth-place Australia’s cheese exports are expected to jump 28% this year.

In Argentina, the Foreign Ag Service says their dairy industry is grappling with challenges brought on by the country’s economic crisis.  Along with the 7.4% year-over-year decline in milk production, the country has seen a 13% reduction just since January when compared to the first six months of 2013.  Domestic consumption is down, but their exports are more competitive after Argentina’s currency was devalued.

In the butter market, exports are falling in three of the top five exporting markets, with the United Kingdom dropping 21%.  The U.S. and Belarus increased butter exports by 3%.

USDA expects China will be importing more butter this year due to higher domestic consumption, with most of that demand being met by New Zealand and the EU.