German milk production to exceed quota

The seasonal decline in milk supply in Germany continues steadily. In the middle of July 0.4% less milk was delivered than the previous week. But the delivery in this last quota year is still much larger than in the year before. In the middle of July it measured around 3% above last year’s levels, as in the same period this year, 615,511 tons of milk were delivered. 

The mid-July production of butter and milk powder in Germany also rose, while cheese production had a decline, according to market report organisation ZMB (Zentrale Milchmarkt Berichterstattung). That week 5,643 tons of butter were produced, which is 6.2% more than the week before and 5.7% more than the same week last year. The production of milk powder rose by 4.1% compared to the week before, as 3,662 tons of milk powder were produced in the middle week of July.

Production of cheese, on the other hand, has declined in Germany. In the middle of July 22,510 tons of cheese (not counting in cheese spread and cream cheese) were produced, which was 4.9% less than the week before and 6.2% less than the same week last year.

As milk deliveries are much higher than last year, this will bring a lot of money to the EU for exceeding the quota.  The EU received €163 million from Germany for the last quota year of 2013/14.

Only if the delivery will fall below the level of the 2013/14 quota year for the remainder of this quota year, it can bring the exceedance down to a 2013/14 level. But this is highly unlikely. Indications are that the expansionary tendencies in Germany will continue, so the odds are that the excess to March 2015 will be even higher than the year before.