European Dairy Market Summary

MADISON - Nov 22/05 - SNS -- Dairy market conditions in western and eastern Europe were reviewed in the latest report on the sector released by the USDA today.

WESTERN AND EASTERN EUROPE

Milk production in Europe is basically at seasonal low levels.  Recent
reports indicated that milk volumes have been running behind last
season, but now some reports are stating that milk volumes are even
with and, in instances, increasing above year ago levels.
Temperatures have been mild throughout Europe during much of the fall,
but now temperatures are becoming seasonally cooler.  Grazing has
ended, thus winter feed supplies are now being used.  Milk producers
are stating that winter feed stocks are in good supply with quality
also in their favor.  With milk volumes at seasonally low levels,
manufacturing is also on the low side.  Although manufacturing
continues, a significant portion of current milk volumes are clearing
to liquid milk bottlers. Buying interest continues to center around an
internal or domestic need, although some traders are stating that
international buyers are returning to the marketplace.  Now that
Ramadan is past, a few Middle Eastern buyers are now returning for
immediate or near term shipments.  Some buyers that had negotiated
January - March shipments are asking suppliers/traders if these orders
could be shipped any earlier.  Some traders are questioning suppliers
to see if this could occur and are being told that other traders are
asking the same question.  New international buyer interest is
occurring, but no significant volumes are before reported.  A few
buyers are asking suppliers/traders if they could secure EU 15
supplies versus EU 25 stocks.  Some Russian buyers are in the market
looking for butter and cheese volumes for the upcoming winter months,
but this buyer interest does not seem to be as aggressive as in past
years.

EASTERN OVERVIEW:  Milk production in Eastern Europe is nearing seasonal
low levels.  Milk volumes continue to run heavier than last year at
this time, although recordable marketings are probably the main factor
for the increase versus actual production increases.  Stocks of
manufactured dairy products are available in this region of Europe.
In recent weeks, some international sales have occurred, but the
majority of trading activity has centered within other EU 25
countries.

1300c steve Schneeberger  (608)224-5084

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STAT News Service