Deliveries in the first 11-months of 2014 were 5.1% higher than in year 2013. However, the EU average farm gate milk price decreased in November 2014 by 2.6% to 34.3 c/kg, which is 14% lower than in November 2013.

The figures released by the European Commission's Milk Market Observatory also show that the average price of dairy product prices generally decreased last month, with the only exceptions of butter (+0.2%) and wheypowder (+1.7%). Whole milk powder (WMP) and skim milk powder (SMP) decreased by 1.8% and 0.9% respectively.

Exports

There was strong demand for SMP, condensed milk and butter/butteroil. By October 2014, SMP exports had already ourperformed total annual SMP exports in any of the seven preceding years.

Russia

Up to November 2014 Russia was still the main outlet for EU butter and cheese exports. Butter exports to Russia are (as of November) 24% below the same period in 2013 and represent 19% of total EU butter exports, compared to 29% in 2013.

Exports to the US and Saudi Arabia are increasing, and Algeria is by far the main destination for EU exports of milk powders. China, Indonesia and Egypt are also very high importers of European SMP.