EU Dairy Farmers' Gathering Shows Slower Production

 Mr Phelan reported that most attendees predicted stable to firmer milk prices to year-end, and Irish co-ops should have the confidence to hold milk prices till then at least, too.

"At the meeting, our fellow-European farmer representatives told us that in France, drought and disappointing milk prices caused milk production to fall 4 per cent in September and 5 per cent in October. Dutch milk production is down 2.5 per cent due to the phosphates restrictions, but also to a 10 to 20 per cent drought-related fodder shortage," he said.

"German dairy farmers expect their 2018 output will be down 1.45 per cent below 2017. In the UK, despite growth in Northern Ireland, overall supplies are stable. Finnish dairy farmers have lost half of their grass crop to the drought, and expect supplies to fall 0.5 per cent this year, and by 1.1 per cent next year. Production also fell in Austria, is expected to fall for the next 3 months in Italy, and while Poland continues to increase output, it is by a more modest 2 per cent for the year to September," he added.

"Clearly, the full impact of the drought is only transpiring after it has ended. Despite many countries reporting improved rainfall since August or September, the earlier dry spell continues to impact on fodder and the availability and cost of feed and grain.

"My conclusion is that many dairy farmers around Europe will struggle to sustain production with disappointing prices in the face of scarce fodder and high-priced feed. This means lower volumes for the next number of months, and scarcity always pushes up prices.

"In this context, co-ops can, and must, commit to holding their milk prices at least to year end."

TheCattleSite News Desk