# Analysis: Is time right to ramp up milk production? - Farmers Weekly

> The chief executive of Arla warned of a looming butter and cream shortage in the EU because farmers cut milk output starting in 2016. Analysts cite drought in New Zealand and the US, falling output in Germany and France, and an EU scheme paying producers to limit production. Wholesale butter prices in the UK reportedly rose sharply over the past year.

- Date: 2017-07-14 · published 2017-07-14T12:00:00.000Z
- Category: market · region EU · magnitude medium
- Page: https://feedsoft.ai/events/69993-analysis-is-time-right-to-ramp-up-milk-production-farmers-weekly
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Tighter EU and Oceania supply of butterfat supports global dairy product prices and pulls up US butter and milk values through export demand. The price effect depends on whether farmers respond by expanding output.

## Read by commodity

- MILK: bullish ▲

## Sources

- fwi.co.uk: https://www.fwi.co.uk/business/markets-and-trends/milk-prices/analysis-time-right-ramp-milk-production

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