2024-01-10 01:27:59
The European Commission considers that, in general, the market situation is improving, although production costs remain high. Milk deliveries to the European Union (EU) started to decrease in August (-0.1%) and September (-0.8%), while prices at origin started to rise. This comes after eleven months of growth, according to data handled at the latest meeting of the EU Milk Market Observatory, held recently.
Between January and September 2023, EU milk production was still 0.5% higher than in the same period in 2022. As for prices, after a sharp fall in the first half , milk prices at origin rose by 1.8% on average in the EU in October. Despite this improvement, this price is 21.9% lower than the one recorded in October 2022, although it is higher than the average of the last five years. The European Commission considers that, in general, the market situation is improving, although production costs (other than feed for livestock) remain high and maintain pressure on the sector’s margins.
Good forecasts
In the longer term, in its outlook for agricultural markets in the period 2023-2035, the European Commission predicts that EU dairy productivity will continue to increase, although at a slower pace than in the past, due to stricter quality and sustainability standards. European and national environmental policies already in place will lead to a decrease in the milk hut (-13%), so that EU milk production could decrease slightly by 2035 (-0.2% ).
The Community price of milk will be clearly higher than that recorded until 2022 (+25% approximately by 2035) but this increase will be mainly due to inflation; price developments in real terms will remain fairly stable. Among dairy products, cheese will see the biggest increase in price, although butter and skimmed milk powder will also rise significantly.
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