Explore the reasons behind the decline in Dutch milk supplies as European production rises. What does this mean for milk prices and the future of dairy farmers? Continue reading to uncover the details.
The divergence in milk supply trends between the Netherlands and Europe is a significant development. In April, Dutch dairy farmers produced 1.4% less milk than last year, while Europe witnessed a 0.6% rise in March and a 1.2% increase in the first quarter of 2024.
The contrasting milk supply trends in Poland and Ireland, with a 4% growth and a 6% decline respectively in March, underscore the regional variations that significantly impact the dairy industry.
Dutch farmers are grappling with challenges such as bluetongue and reduced derogation, resulting in a 57 million kg (1.2%) drop in the first four months of 2024. However, the growth in Belgium, Germany, and France is helping to offset these declines, demonstrating the resilience of the dairy industry in the face of adversity. These mixed trends paint a complex but hopeful picture of the dairy industry landscape across Europe.
Cloudy Skies Over Dutch Dairy: April 2024 Milk Deliveries Slump
| Period | Milk Supply (million kg) | Change Compared to Previous Year |
|---|---|---|
| January 2024 | 1,320 | -1.5% |
| February 2024 | 1,100 | -1.0% |
| March 2024 | 1,400 | -0.9% |
| April 2024 | 1,350 | -1.4% |
The latest data paints a sobering picture of the Dutch milk supply. In April 2024, dairy farmers in the Netherlands faced a 1.4 percent decrease in milk deliveries compared to last year. This decline is part of a broader trend, with the first four months of 2024 seeing a total reduction of 57 million kilograms of milk, or a 1.2 percent drop, compared to the same period in 2023. Such statistics underscore significant challenges facing the Dutch dairy sector.
Factors Influencing Dutch Milk Decline: Disease and Regulation Tightening
It’s crucial to understand the factors that have led to the decline in Dutch milk supply. The main contributors are the aftermath of bluetongue disease, which affects cattle, and the reduction of special permissions allowing farmers to exceed EU nitrogen limits. These tighter restrictions on nitrogen usage mean less intensive dairy farming practices. By understanding these factors, stakeholders can be better informed about the challenges Dutch dairy farmers are facing.
Europe’s Milk River Flows Stronger: March 2024 Sees Notable Increase in Deliveries
| Country | Milk Supply Growth in March 2024 |
|---|---|
| Poland | +4% |
| Belgium | +0.6% |
| Germany | +0.6% |
| France | +0.6% |
| Ireland | -6% |
While Dutch dairy farmers are experiencing a decline, Europe as a whole is showing a different trend. In March 2024, milk deliveries across Europe increased by 0.6 percent. The first quarter of 2024 saw European dairy farmers delivering 1.2 percent more milk than in 2023. Regions like Belgium, Germany, and France showed modest increases, indicating a stable milk collection across the EU despite challenges in places like Ireland. These contrasting trends are significant and should be noted by all stakeholders in the dairy industry.
Spotlight on Individual Countries: Poland’s Surge and Ireland’s Woes
| Country | Trend | Percentage Change |
|---|---|---|
| Poland | Increase | +4% |
| Ireland | Decrease | -6% |
| Belgium | Increase | +0.6% |
| Germany | Slight Increase | +0.3% |
| France | Increase | +0.6% |
| Netherlands | Decrease | -1.2% |
Looking closer at individual countries, you’ll see some clear trends. Poland is the most vigorous climber in March, showing a solid 4% increase in milk supply. This boost is thanks to favorable weather and better dairy farming practices. On the flip side, Ireland saw a significant drop, with a 6% decrease in milk supply due to extreme wetness impacting pasture conditions.
April Showers Bring Price Lowers: Tracking European Milk Price
| Country | April 2024 Price (€ per 100 kg) | March 2024 Price (€ per 100 kg) | % Change |
|---|---|---|---|
| Netherlands | 44.10 | 44.30 | -0.45% |
| Belgium | 43.85 | 43.95 | -0.23% |
| Germany | 44.20 | 44.35 | -0.34% |
| France | 43.75 | 43.85 | -0.23% |
| Poland | 43.60 | 43.70 | -0.23% |
| Ireland | 42.80 | 43.30 | -1.15% |
European milk prices dipped slightly in April. The average was 43.97 euros per 100 kg, down by 0.49 euros from March. This small drop mainly stems from seasonal factors and specific challenges, like the wet weather in Ireland, which impacted bonuses.
Weather Woes and Economic Ripples: Unpacking the April Dip in European Milk Prices
Several factors contributed to the slight drop in European milk prices in April. A key factor was the removal of bonuses by some Irish factories due to extreme wetness in Ireland, which disrupted farming conditions. Additionally, stabilizing milk collections across Europe and a 6% decrease in energy costs in Q1 2024 also played roles. These combined influences created a ripple effect, slightly nudging average milk prices downward.
The Bottom Line
The milk supply in 2024 shows a clear contrast. Dutch dairy farmers saw a 1.4% drop in April deliveries due to bluetongue and new regulations. In contrast, European dairy producers enjoyed a 1.2% increase in the first quarter. However, April’s European milk price fell slightly to 43.97 euros per 100 kg, influenced by the removal of seasonal bonuses in Ireland.
Discover why Dutch milk supply is declining while European production grows. How will this impact milk prices and dairy farmers? Read more to find out.
- The Netherlands saw a 1.4% decline in milk deliveries in April 2024 compared to April 2023.
- From January to April 2024, Dutch milk supply decreased by 57 million kg (-1.2%) compared to the same period in 2023.
- The decline in the Netherlands has been linked to the aftermath of bluetongue disease and stricter regulations reducing derogation allowances.
- Conversely, European countries overall experienced a 0.6% increase in milk supply in March 2024.
- Poland recorded the highest growth at 4% in March 2024, while Ireland faced the steepest decline at 6%.
- Average European milk prices decreased slightly in April 2024 to 43.97 euros per 100 kg of milk.
- The price drop was partially due to the removal of bonuses in Irish factories, attributed to extreme wet weather conditions.
