# Main dairy trade index jumps by 11.4%

> EU milk production fell 2% behind 2015 levels from January to August and is expected to decline further. Around 58,000 EU dairy farmers signed up for compensation to cut output by over 1.07 million tonnes. Wet weather in Australia and lower New Zealand output in October also tightened supply.

- Date: 2016-11-03 · published 2016-11-03T12:00:00.000Z
- Category: policy · region EU · magnitude medium
- Page: https://feedsoft.ai/events/4653-main-dairy-trade-index-jumps-by-11-4
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

EU government-funded output cuts and weather-hit exporters reduce global milk supply, supporting dairy prices into the coming months.

## Read by commodity

- MILK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2016-11-03 | 1 | +11.9% | 9.8 | Falling EU milk output, farmer compensation to cut production, and wet weather in Australia and New Zealand point to tighter global supply, supporting dairy prices. |
| MILK | 2016-11-07 | 5 | +14.8% | 3.9 | Falling EU output, farmer compensation to cut production, and wet weather in Australia and NZ point to tighter global supply, which supports prices. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2025-04-03 | [Economic Update: Several dairy bills receive support in Congress \| Ag Proud](https://feedsoft.ai/events/5651-economic-update-several-dairy-bills-receive-support-in-congress-ag-proud.md) | +0.7% | +7.4% |
| MILK | 2018-07-25 | [Farmers prefer Trump do trade deals than hand them cash \| Tyler Morning Telegraph](https://feedsoft.ai/events/6572-farmers-prefer-trump-do-trade-deals-than-hand-them-cash-tyler-morning-telegraph.md) | -0.6% | +5.7% |
| MILK | 2022-01-07 | [The Farmer's Exchange Online Dairy Economist: 2022 Should Be Profitable for Milk Producers](https://feedsoft.ai/events/4074-the-farmer-s-exchange-online-dairy-economist-2022-should-be-profitable-for-milk.md) | -0.4% | +1.4% |
| MILK | 2020-11-30 | [Government dairy purchases at a 30-year high](https://feedsoft.ai/events/50301-government-dairy-purchases-at-a-30-year-high.md) | -33.6% | -32.1% |
| MILK | 2020-04-18 | [Trump’s farm aid bailout program, explained \| Vox](https://feedsoft.ai/events/53627-trump-s-farm-aid-bailout-program-explained-vox.md) | -1.6% | -8.7% |

## Sources

- irishexaminer.com: https://www.irishexaminer.com/farming/arid-20428775.html

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.