European Dairy Market Summary

MADISON - Jan 7/10 - 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 European milk production season remains at
seasonally low levels, although more indications of increases are
being reported.  Milk handlers indicate that the increases are
not significant, but noticeable.  Milk volumes during the past
holiday period were at projected levels with much of the milk
clearing to cheese manufacturing.  Traders and handlers stated
that market activity during the past few weeks was very light,
but is projected to increase as the new year unfolds.
Manufacturers and handlers of dairy products indicate that stocks
are available for immediate or near term buyer interest.  Details
of the recent milk powder tender remain vague.  Many traders and
handlers state that it is quite difficult to put together a
cumulative total of skim and whole milk powder volumes that will
be needed to fill this tender.  Many still feel that the majority
of skim milk powder will be sourced from Europe with Europe and
other regions of the world filling the whole milk need

EASTERN OVERVIEW:  Milk output in Eastern Europe remains at
seasonally low level.  Winter weather conditions prevail in most
Eastern European countries which will limit production growth for
a number of weeks.  Usually, Eastern European milk production
lags Western European production development by six weeks or so,
thus no noticeable increases are anticipated until mid February.
Traders and handlers state that sales during the past two weeks
have been slow as most buyers were absent from the market,
observing the year end holidays.

0930CT steve Schneeberger  (608)250-3204

---

STAT News Service