Global milk supplies grew in 2017 across most of the key production regions, ending the year with just over 5bn litres (1.8%) more milk than was delivered in the previous year. The vast majority of the growth (64%) originated in the EU-28, with the US accounting for most of the remainder.
Forecasts for 2018 suggest a further increase in milk supplies, although to a lesser degree. In total, there is expected to be growth of around 1.2% – 1.3%, amounting to between 3.5 – 3.8bn litres more milk.
Based on how global dairy product prices performed in 2017 in the face of strong supply growth, the moderate increase forecast for 2018 is not expected to put too much downward pressure on pricing, assuming demand continues at current levels.