Global milk collections up 3.5% in year to September - Ornua
Global milk collections increased by 3.5% in the year to September, with flows expanding in most major producing regions, Ornua said.
In its latest market report, the co-op noted that the global forecast has risen again, with annual output now expected to be up by 2%.
The report outlined that European milk supply "lifted noticeably" during August and September.
Milk supply in the US and New Zealand is increasing at a faster rate and there is more dairy product available around the world.
"Demand has struggled to keep pace. Retail sales are solid, but the rate of growth eased. Exports are flat, while the foodservice category is subdued," Ornua said.
Ornua
The co-op said that European pricing dropped again in October but is "now back in line with global and historic levels".
"Activity improved as a result and there are signs of stability. However, if pricing is to recover in the short term, demand needs to lift markedly.
"It is most likely that pricing will stabilise around current levels for the rest of quarter four but there are downside risks," it added.
Ornua said dairy demand is "muted". European retail sales are solid, but the rate of growth eased, and inflationary pressures remain.
The report stated that the global economy is showing signs of a moderate slowdown and uncertainty could dampen consumption and investment.
According to the report, milk collections across the European Union were up by 3% in August and another 3.5% in September.
Production improved in Germany, France, the Netherlands and Poland.
In Ireland, the rate of growth eased in September (0.9%) and flows are expected to turn negative in the final quarter (Q4) of the year.
Milk flows have been strong in the UK with output lifting by +5.5% in August and +6.2% in September
For the US, supply has been strong and should lift by around 3% in September.
The report said that production in New Zealand is "exceeding expectations supported by strong milk prices and pasture growth".
Milk output is forecast to fall in China this year because of lower milk prices and reduced herd sizes.
However, in Argentina flows continue to improve supported by the removal ofexport subsidies and higher yield per cow.
