European Dairy Market Summary

MADISON - Feb 14/08 - 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:  Milk production is increasing seasonally through
most of Europe.  The final decision concerning whether or not to
increase EU milk production quotas for the upcoming season will be
made in March.  A small majority of countries currently favor the
increase.  January 2008 milk receipts are sharply higher in France
from last January.  Germany was also higher and even showing a very
small increase in cow numbers, something that has not occurred in many
years.  Winter has not been unduly harsh in most countries.  Stored
feed supplies are in good position for producers though purchased
concentrate costs are sharply higher.  Sizeable volumes of butter are
expected to enter private storage when the program reopens in March.
The drought in New Zealand may force international customers looking
for additional dairy products to return to Europe sooner for
additional volumes.


EASTERN OVERVIEW:  Milk production continues to lag the increase in many
Western European countries.  Product remains available for export with
manufacturers and exporters still expecting a good year for milk
production and dairy products.  Product is still available in
inventory from last season that exporters hope to clear before the new
season begins.

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STAT News Service