European Dairy Market Summary

MADISON - Nov 9/06 - 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

WESTERN OVERVIEW:  Milk production is reported to be at seasonally low
levels.  Weather and temperature patterns are very typical for late
fall, thus the pasture grazing season has ended.  Farmers are already
reaching into their winter feed supplies which for some is earlier
than usual.  With milk supplies seasonally low, manufacturing
schedules are limited.  Milk handlers and traders state that milk
supplies have not been overly heavy during the past summer season,
thus inventories of manufactured dairy products are lighter than
desired.  Stock availability is basically limited to an internal or
domestic market.  International sales out of Europe have been slow
this year as overall supplies were limited and prices were often
higher than buyers were willing to pay. Prices for available product
have increased, but are reported as nominal.  Some traders and
handlers indicate that domestic buying interest is slowing down, thus
they do not foresee much upside to current prices.

EASTERN OVERVIEW:   Milk production in Eastern Europe is also at
seasonal low levels.  Seasonal manufacturing schedules have also
trailed last year, but stocks are more available than from their
Western counterparts.  Eastern traders and handlers state that they do
not foresee much international sales activity occurring out of the
region in the coming winter months.

0930c steve Schneeberger  (608)250-3204

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STAT News Service