European Dairy Market Summary

MADISON - Apr 12/12 - 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

EASTERN OVERVIEW:
The European 2011 - 2012 milk quota year has ended and the new year
began April 1.  For 2011 - 2012, it appears that milk volumes in
Austria and Germany surpassed quota levels with a few other countries
on the border line.  For the most part, milk handlers are not
reporting milk marketing withholdings prior to the end of the recent
quota year to maintain under quota levels, thus not a larger volume in
early April.  Milk production trends remain positive throughout most
of Europe.  Weather conditions have been favorable with mild
temperatures and scattered rainfall.  Milk producers are indicating
that early spring weather patterns are nearly ideal for cow comfort
and milk production development.  Pastures are greening very well.
Traders and handlers of manufactured dairy products are stating that
volumes are increasing, although overall sales activity remains slow.
Some international buyers are returning to the marketplace, but remain
cautious with their purchases.  For those buyers, hesitancy continues
to be exercised with purchases mainly for short term or immediate
needs, although buyers are already looking forward to third quarter
needs.  As milk volumes increase, so is manufacturing.  Much of
current production is clearing to inventory with internal or domestic
sales clearing typical volumes for this time of the season.  Overall,
prices for most manufactured dairy products are easing and in some
instances, starting to align themselves with other international
offerings.  As milk production expands, manufacturing increases and
overall sales remain slow and inventories continue to build.  Butter
continues to clear to PSA and is running about double the level last
year at this time.  The Dairy Management Committee will be meeting
next week on the 19th and updated PSA figures will be released.

EASTERN OVERVIEW:  Milk production trends in Eastern Europe appear to
also be developing on a positive basis.  Although temperatures are
cool, overall weather patterns are positive for early milk production
development.  Milk volumes remain seasonally low, but manufacturing
facilities are starting to gear up to process an increasing milk flow.
Stocks of new products are limited, although volumes are starting to
be generated.  Traders and handlers are indicating that buyer interest
remains limited, but some buyers at least are starting to shop,
especially for third quarter needs.  Buyers had been standing back
from the marketplace for quite some time and now are returning.


9:30c steve schneeberger   608-278-4154

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STAT News Service