European Dairy Market Summary

MADISON - Mar 4/10 - 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 effects of a cold winter season continue to
impact milk production in Western Europe.  Seemingly, most all
countries are seeing milk intakes trending lower in recent weeks with
intakes more stable this week.  Trade indications of milk output
changes this year in selected countries showed Ireland down 10%,
France down 2%, Germany lower, and Austria steady.  Localized rains
were heavy and caused some flooding in parts of France, yet the
impact on milk output was not noticed.  Intervention is not receiving
any current dairy products and current stocks are closed.  European
butter prices are steady to slightly higher with an unsettled market
tone.  Production is mainly steady with the recent period and market
conditions generally balanced.  Exporting is light.  Whey prices
moved slightly lower, although the market tone is stable.  Some of
the price adjustments are due to lower currency valuation.  Whey
output is steady to trending higher where cheese production is
building.  Whey demand is mostly along projections for local sales,
while exports are mixed.  European skim milk powder market prices are
steady to higher and the market undertone is firmer than in recent
weeks.  For Europe, production is steady to lower with milk moving to
cheese production.  Whole milk powder prices are unchanged to
slightly higher.  The market undertone is mostly steady, helped by
pricing levels in other regions.  Traders and handlers still expect
that European SMP and WMP will be utilized to fill a recent tender.

EASTERN OVERVIEW:  Eastern European milk production levels are slowly
improving following relatively poor winter conditions characterized
by cold temperatures and heavy snowfalls.  Milk intakes at processing
plants remain below projections.  Finished products are in tighter
positions than expected and buyers are reaching to other countries to
secure dairy products.

1030CT Butch Speth  (608)250-3202

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STAT News Service