Irish milk production continues to surge ahead despite both poor weather conditions and milk prices this spring.

Domestic milk intake by creameries and pasteurisers was estimated at 294.8m litres for February 2016, according to latest CSO data. This was 37% above the corresponding 2015 figure with February of last year one of the last months before the abolition of milk quotas.

The Feburary returns from Ireland, follows the publication of EU milk production figures earlier this week for January which showed an increased 5.6% in January 2016 compared to the corresponding period in 2015, the latest figures from the Milk Market Observatory (MMO) show.

Ireland, Luxembourg and Belgium posted the strongest increases in milk production for January, with Irish milk production up 19.5%.

EU

Despite milk prices at near record lows in parts of the EU, milk production across the continent is set to rise again this year, according to the European Commission.

In its latest outlook for the year, the Commission says a further increase in the number of dairy cow numbers in older EU Member States (+1.2%) was recorded in November/December 2015 compared to last year.

By contrast, the 3% decrease in dairy cow numbers in newer Member States was the highest recorded since 2011.

It notes that there are significant differences between Member States from a 5% decline in Poland and Estonia to a 10% increase here in Ireland.

According to the Commission, these developments imply further increases in EU milk deliveries in 2016, especially during the first quarter (+5%), which compares to the same period in 2015 when many farmers reduced production in countries at risk of exceeding their quota.

By contrast, under normal weather conditions, milk deliveries could stabilise at slightly below 2015 level towards the end of the year, it says.

In 2016, the Commission forecasts that deliveries could therefore grow by around 2 million tonnes.

Meanwhile outside the EU, the USDA forecasts for 2016 higher deliveries in the US (+1.9 million tonnes; +1.6%), Australian production could remain stable while production in New Zealand could further decline by 600,000 tonnes.

In total, in the EU and the latter countries, the Commission forecasts 3.5 million tonnes additional milk is expected to be produced in 2016.