European Dairy Market Summary

MADISON - Mar 14/13 - 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 trends for Western European
countries are following recent patterns.  Total output continues
below year ago levels on weekly and monthly basis for the region
as a whole.  In January 2013, EU milk deliveries were 2.1% lower
than during January 2012.  Germany production was stable,
Ireland was down 11.8%, the UK was down 5.3%, and France was
down 4.2%.  Weather patterns have been generally neutral and any
impact minimal.  Supplies, quality, and prices of feed, are all
are playing an impact on milk output.  This week, Germany saw
the return of snow and wintery weather.  No impacts on milk
deliveries were noted.  Dairy product prices are steady to
higher across reported categories, gaining momentum from events
in other areas of the world.  Dry conditions in Oceania have
curtailed milk output and have been a contributing factor to
higher dairy product prices.  The EU is positioned to be an
available supplier into international export market needs.
Higher pricing points have also spilled over into the EU market.
The PSA butter program received around 4,800 MT of butter into
the program since starting on March 1st, the start of the new
program year.  The level is less than half the volume of a year
ago and attributed to better pricing and commercial placement.
EASTERN OVERVIEW: Eastern European milk production levels are
trailing year ago numbers. In January 2013, milk deliveries were
1.1% less than the same month a year early.  Declines were noted
in Poland, where concerns are noted about exceeding the milk
quota.  Dairy product offerings are adequate to meet current and
contracted trade needs.
0930c Butch.Speth@ams.usda.gov 608.278.4152

---

STAT News Service