Global milk collections up around 4% in March - Ornua
Global milk collections grew by around 3.9% in March, with increases seen in all major production regions, according to Ornua.
The latest Ornua Global Dairy Market Report shows that collections across the 27 EU countries rose by 4.7% in February and are forecast to increase by an additional 4.1% in March.
However, milk production in Ireland fell by -0.7% in March, but this was off a strong base a year previously.
March milk collections in Germany increased by 7.0%, setting another monthly record.
Production in France is expected to rise by 5% in March, although weekly data indicates that growth may be slowing.
The Netherlands recorded a 6.1% rise in collections in March from a low baseline, while Poland saw collections increase by 3.2% in the month.
Flows are said to have been "robust" in the UK, but the pace of that growth seems to be easing.
Milk collections
The report shows that milk supply remains strong in the US, increasing by 2.3% in March.
Favourable conditions and strong milk prices have helped to drive output in New Zealand.
Despite strong production in Australia in March, Ornua noted the dairy sector there is cautious due to high input costs.
In Argentina, supply continues to grow with favourable weather conditions and increased yield per cow.
The report noted government figures from China have indicated a 3.4% increase in milk supply in the first quarter of the year.
Ornua
Ornua said that global milk supply growth may have peaked, but it is "likely to remain high for longer than previously anticipated".
"Despite strong supply levels, a combination of robust retail sales and exports, along with the ongoing conflict in the Middle East, pushed European commodity prices higher in the first quarter.
"However, the subsequent spike in energy prices has raisedconcerns about future demand, especially after a period of strongexports," the report said.
Ornua added that "even in the most optimistic scenarios, energy prices are likely to remain higher for several months".
In its market outlook, Ornua suggested that prices for cheese and butter may ease further in the coming weeks but noted "early signs of stability".
The report said that skim milk powder (SMP) prices could increase further in the short term.
"Despite the prevailing bearish sentiment in the market, demand has remained strong, and European prices are competitive compared to both global markets and historical averages.
"Though concerns about milk supply and uncertainties regarding future demand suggest that caution is warranted about potential price increases," Ornua said.
