European Dairy Market Summary

MADISON - Jan 4/08 - 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:  The yearend holiday period has caused trading of
dairy products to slow.  Most handlers and traders indicate that
buying interest during this time of the year is typically slow and
this year is no different.  Many traders feel that sales potential
will remain slow for awhile.  Stocks of manufactured dairy products
are available for immediate and future needs.  Not only is buyer
interest slow, so are offerings from suppliers.  Most feel that it
will take a week to 10 days into the new year before sales activity
might resume.  Prior to the holidays, prices were weakening for many
European dairy products and in instances, prices continued to weaken
during the holiday period.  Suppliers and handlers are not quite sure
when a more active sales period might occur, but looking back at
previous weakening periods, prices needed to stabilize before
significant buyer interest resumed.  Milk production in Europe is in
typical winter production patterns with increases being noted in
various regions.  The winter season is at hand, but milk handlers
indicate that no significantly cold or brutal weather conditions are
impacting production growth.  Milk production will resume in more
earnest during the next 4 - 6 weeks.  Most feel that a milder winter
will hopefully translate into a stronger start to a positive milk
production season.


EASTERN OVERVIEW:  Not too much has changed in Eastern Europe during
the past holiday period.  Milk production is bouncing around at low
seasonal levels, although some milk handlers indicate that receipts
might be slightly heavier.   Sales activity during the year end period
has been slow and at midweek still remains limited.  Many feel that it
will take a good week or so before buyers have settled into routines
of prior to the holidays.  Most buyers had covered themselves during
the holiday period, thus it will take a few days to reevaluate holiday
carryover and future needs.

0930c steve Schneeberger  (608)250-3204

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STAT News Service