Dairy market : European tendency to overproduction

« The dairy environment remains difficult with very low prices, particularly for skimmed milk powder. » explains Benoît Rouyer, economist at the dairy trade.
And it’s the dairy Europe itself which is the main responsible for the difficult situation crossed by producers. Restoring a more balanced position on the European and global dairy market is not yet in the agenda because « the European and global dairy production is still growing too much. »
Since April 2015, the European milk production increased overall by 2,8%, but heterogeneously across countries. If the increase was very moderate in France and Germany, milk production leaped by 16% in Ireland, by 10% in Belgium and by 9% in the Netherlands. For the whole EU, the rise tends to emphasize over the months.
The relative stagnation of the charges facing low milk prices paid to producers continues to maintain, moreover, the « scissors effect » so harmful to operating accounts. « The charges have changed little but decreased costs of food and energy was offset by a gain in other expense items such as veterinary fees and repair and maintenance costs. »
Finally, selling prices to customers are paradoxically upwards, including prices of butter and drinking milk. 
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