Europe has been handcuffed by quotas for more than 30 years. Now that those self-imposed production limits are gone this April, the question remains: How will Europe compete on the global dairy product stage?
A 1.8 percent annual growth rate through 2016 was pegged by the European Commission's report, "Winter 2015 Short-Term Agricultural Outlook." During the next two years, milk per cow was projected to grow from 14,870 to 15,364 pounds in a dairy herd of 23 million cows found throughout the 28 countries. In contrast, the 9.3 million cows in the U.S. averaged 22,258 pounds of milk last year.
Of course, the U.S. Dairy Export Council (USDEC) has been keenly aware of Europe's changing potential. However, due to cost structures and available resources, USDEC projects that only six of the 28 countries in Europe could significantly grow milk production in the post-quota era. Those major players include Ireland, Denmark, France, Poland, Germany and the Netherlands.
Germany, the continent's largest milk producer, was pegged to grow milk 1.8 percent annually through 2020. Ireland, meanwhile, could top the group and expand by 4.6 percent with much of that milk being turned into exportable commodities.
To read more about Europe's potential, click here to view the USDEC projections.
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(c) Hoard's Dairyman Intel 2015
April 6, 2015
A 1.8 percent annual growth rate through 2016 was pegged by the European Commission's report, "Winter 2015 Short-Term Agricultural Outlook." During the next two years, milk per cow was projected to grow from 14,870 to 15,364 pounds in a dairy herd of 23 million cows found throughout the 28 countries. In contrast, the 9.3 million cows in the U.S. averaged 22,258 pounds of milk last year.
Of course, the U.S. Dairy Export Council (USDEC) has been keenly aware of Europe's changing potential. However, due to cost structures and available resources, USDEC projects that only six of the 28 countries in Europe could significantly grow milk production in the post-quota era. Those major players include Ireland, Denmark, France, Poland, Germany and the Netherlands.
Germany, the continent's largest milk producer, was pegged to grow milk 1.8 percent annually through 2020. Ireland, meanwhile, could top the group and expand by 4.6 percent with much of that milk being turned into exportable commodities.
To read more about Europe's potential, click here to view the USDEC projections.
(c) Hoard's Dairyman Intel 2015
April 6, 2015
