European Union: Dairy and Products Semi-annual

Commodities

Post estimates that 2020 European Union (EU) milk deliveries will remain stagnant relative to 2019 due to an overall reduction in the herd population and global market disruptions following the COVID-19 pandemic. In its response to the market volatility caused by COVID-19, the European Commission (EC) authorized its Private Storage Aid (PSA) scheme to subsidize cheese, non-fat dried milk (NFDM), and butter storage for up to six months. Post expects NFDM and butter production will increase, given the longer shelf life of those products and eligibility under the new PSA scheme. 2020 cheese production will decline from 2019 levels because of reduced exports. Post forecasts that whole dry milk (WDM) production will plateau in 2020.

European Union: Dairy and Products Semi-annual