Milk production in the major producing regions of the world remains subdued, which is supporting a positive outlook for dairy markets in 2020.

In Europe, milk production growth has been sluggish throughout 2019, with supplies up just 0.5% up to the end of October across Europe.

In Germany, the largest milk-producing state in the EU, winter milk production has been flat, with November milk supplies up just 0.4% year on year to 2.4bn litres.

From January to November 2019, German milk production came in at 28.8bn litres, which is 0.2% behind the same period the previous year.

In neighbouring France, the EU’s second-largest milk producer, winter milk production has been strong, with higher output in October and November. However, French milk production is likely to finish 2019 down slightly at around 23.7bn litres.

Milk production in the UK, the EU’s third-largest milk producer, will finish 2019 up about 2% year on year at 14.9bn litres.

However, UK milk supplies have been in decline over the final months of 2019, suggesting spring milk supplies could be back in 2020.

Across the water in the US, 2019 milk production looks set to be flat at 95.3bn litres.

However, milk prices are rising in the US and grain prices are cheap, which could encourage higher output in 2020. Time will tell.

Meanwhile, New Zealand milk production for the first six months of the 2019/20 milking season is down slightly (-0.4%) at 10.4bn litres.