European Dairy Market Summary

MADISON - May 24/12 - 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

WESTERN OVERVIEW:  Milk production across European countries is at,
near, or slightly off the seasonal peak levels.  Indications are that
France is past the peak and Germany may have peaked this week.  Total
milk output continues to trend higher than year ago levels across many
countries.  Summertime conditions are prevalent across the region and
Processing plants are running at or near capacity levels.  In many
locales, there is increasing demand for fresh milk and cream based
products, which is alleviating the stress on plants making cheese,
butter, and powders.  Milk supplies are being handled well and
processors are able to make the product mix needed for current and
future sales.  The results of the recently completed export tender are
not entirely clear, but industry indications are that there are heavy
volumes of SMP and WMP being sourced from Europe.  The sales are
welcomed to move or rebalance stocks that have been built during the
production season.  Current pricing for SMP and WMP are unchanged, but
there are indications pricing levels are trying to firm.  The weaker
euro has made sourcing European dairy products more attractive.
However, the international markets have been trending lower for
finished dairy products and buyers have shown reluctance to be market
participants when they perceive lower, future values.  Butter
movements into PSA remain active.  From March 1 through May 13, 68,630
MT (151.3 million pounds) of European butter have been offered into
PSA.

EASTERN OVERVIEW:  Eastern Europe milk production continues to build
towards the peak output levels.  Conditions have been generally
favorable for milk cows and milk output has been higher in certain
countries than has been the case in others.  Cow numbers are often
higher and feed more available, leading to milk production gains.
Milk is being processed in a timely fashion and manufacturers are
building stocks for future sales.


9:30c butch speth   608-278-4154

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STAT News Service