In the EU, a reduction in the production of exchange milk products is predicted

USDA analysts forecast a decline in EU butter consumption due to health concerns, alongside reduced butter production and exports driven by lower milk supply and loss of price competitiveness. Skimmed milk powder (SMP) production is expected to drop by 5.8% due to decreased milk availability and weak export demand, particularly from China, leading to a 7.6% fall in EU exports. Domestic SMP consumption is also predicted to decline by 3% in 2024. Whole milk powder (WMP) production is anticipated to fall by 3.9% due to lower milk availability and a shift towards cheese production, with exports further declining due to weak demand from China and competition from New Zealand. However, the domestic market for WMP in 2024 is expected to remain stable with a downward trend in prices.

Such a forecast was made by analysts of the US Department of Agriculture (USDA), Infagro reports. Domestic butter consumption in the EU is expected to continue its downward trend, with consumer concerns about their health negatively impacting their demand for butter. Oil exports will decline this year from highs in 2023. This may be caused by the reduction of butter production in the EU (reduced milk supply) and the loss of price competitiveness on world markets (reduced stocks and higher purchase prices for milk compared to other competitors). Production of skimmed milk powder (SMP) in the European Union this year is forecast at 1.4 million tons, which is 5.8% less than last year, due to lower availability of milk, as well as a decrease in export demand caused by weak demand from China, which puts pressure to world markets. New Zealand's search for markets outside of China is expected to negatively impact SFM exports. As a result, it is predicted that EU exports will decrease by ...