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European dairy markets to be more balanced this year, says AHDB

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Staff Writer | February 6, 2017
European dairy markets
Dairy   A robust export performance remains crucial

European dairy markets are expected to become more balanced in 2017, providing more stability than has been seen over the past two years.

However, a robust export performance remains crucial, says AHDB. This is the general view to come out of this week’s Eucolait meeting, which provided an overview of milk production and demand expectations for manufactured dairy products.

Global milk supplies are expected to remain below previous year levels in most of the key exporting nations in the first half of 2017, with the possibility of some growth in the second half of the year.

Higher prices are likely to stimulate increased milk production, but, in the EU, this could be limited by the requirement to reduce cow numbers to meet phosphate regulation targets in the Netherlands.

Supplies coming out of Oceania will be limited for the first half of the year, as they move into the trough period.

This will be compounded by continued challenges around grazing, arising from unfavourable weather conditions. EU production remains below previous year levels, although it is rising seasonally and the gap is closing.

The U.S. remains in growth, due to improving yields and stable margins.

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