A slight uptick in December cow numbers was reconfirmed by a recent survey of the largest 11 European Union member states, reported the European Commission in its autumn "Agriculture and Rural Development" report. The 11 largest member states are important in dairy circles because they produced collectively a 1.1 percent gain in cow numbers, which is the first upward movement in cow numbers in two decades. These countries are important in global dairy circles because they produce 75 percent of the continents' milk.
Gains in cow numbers were particularly strong in Italy and the Netherlands. Slight upward movement also was reported in Romania, Germany and France. Among the major players, both Poland and Spain posted downturns of 4.3 and 1.5 percent, respectively.
There are a number of reasons to begin paying closer attention to European milk production. In addition to New Zealand, the European Union ranks as one of the world's major dairy exporters. As the U.S. steps up its exports, which are now approaching 15 percent of total production, market conditions in New Zealand and Europe will play a greater role in U.S. dairy farm-level pay prices. Additionally, Europe has operated under a quota system since the 1980s and that is set to expire in April 2015. As this transition takes place, its dairy producers who plan to produce milk long-term will take steps to improve productivity.
After a global shortage in milk deliveries driven by downturns in New Zealand and Europe in the previous year, Eurostat now projects the EU-27 could grow milk output by 0.2 percent this year. In 2014, milk deliveries could move up another 1.1 percent.
