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Milk deliveries declined in the Jan-Apr 2021 period compared to the same period last year in major
European milk producing countries. This drop in milk availability translated into production decreases
for other dairy products. Lower than expected milk supplies across Europe have been supporting
prices since the beginning of 2021, but rainfall in May could contribute to a supply recovery.
Therefore, the prices stopped resulting a stable m-o-m in June at EUR 487.5/MT, but up 7.1% y-o-y.
In the United States, the spring flush is at its peak and milk supply is plentiful. In May 2021, milk
production for the 24 major US states grew by 4.9% y-o-y, to 18.9 billion pounds. Milk is mainly being
channelled into cheese production, where demand is surging due to the re-opening of the
foodservice sector and sales to overseas markets. The June average price of US milk reached USD
403.2/MT, up 7% m-o-m and up 60.2% y-o-y.
The UK milk deliveries are running behind AHDB's projections due to the efforts of some British
farmers to curb production. Therefore, the June average of the Mintec Benchmark Prices for UK milk
rose to GBP 253.1/MT during June, up 21.9% m-o-m and 4.2% y-o-y.