European Dairy Market Summary

MADISON - Jan 21/10 - 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:  Milk production throughout Europe remains
seasonally low.  Some signs of seasonal increases reported a
few weeks ago have subsided as colder temperatures and winter
weather patterns returned.  In recent days, temperatures and
conditions have improved, but no signs of recovery are being
reported at this time.  At the January 21st Dairy Management
committee meeting, no significant changes have occurred to
dairy related programs.  Export refund remain at zero and the
Commission continues to indicate that it is too early to start
releasing butter and skim milk powder onto the market.  Many
within the industry are speculating that it will probably be
after the upcoming spring milk flush before product is
released.  Traders and handler indicate that stocks are
available for both domestic and international buyer interest.
Prices for most manufactured dairy products, except whey, are
trending lower.  Many manufacturers and handlers would like to
clear these stocks before the new milk production season
resumes and additional offerings become available.  At this
point, sales, especially internationally, are slow, but buyer
inquiry is starting to resume.  Traders and handlers speculate
that no significant sales will occur especially as prices
decline.  They feel that buyers have waited this long to re-
enter the marketplace, waiting awhile long will probably be
the case.

EASTERN OVERVIEW:  Winter weather conditions in Eastern Europe
continue, thus limiting any type of early start to the
upcoming milk production season.  Typically, Eastern European
milk production does not show signs of increases until late
February, thus dairy product manufacturers and handlers are
stating that the upcoming season appears to not be any
different at this time.  Traders and handlers state that
stocks are available for immediate clearance and many are
hoping to clear these volumes before the new season resumes.
At this point, sales activity remains slow.

0930CT steve Schneeberger  (608)250-3204

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STAT News Service