European Dairy Market Summary

MADISON - Mar 28/13 - 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:  Western European milk production levels have
been slow to change in recent weeks.  Conditions have been less
than favorable and lower than normal temperatures have limited
pasture growth and access in many countries.  Supplemental
feeding costs are restrictive.  Snow and cold conditions in
Germany are noted compared to more normal, springtime weather a
year ago.  The new season, limited growth rate has stymied milk
intakes and processing plants have been running on lower than
projected schedules.  Dairy product prices are trending higher
to sharply higher.  Offering prices are being pushed as the
market digests the impact on higher Oceania prices and limited
product availability out of that region.  The EU is poised to be
a supplier of whole milk powder to meet any unmet demand.  There
is also fair to good interest for skim milk powder.  Declines in
currency values are creating more conducive export potential for
dairy products out of Western Europe.  Butter pricing is higher
and remains at levels that are limiting export interest.  The
Private Storage Assistance program is being utilized at
approximately half the rate of last year.  Through three weeks
of March, 11,000 MT of butter moved into the PSA program.  The
main reasons for the decline are the higher butter values at the
present time and good internal demand.  The early Easter holiday
this year is also a factor.
EASTERN OVERVIEW: Eastern European milk production trends
continue to be lower, reflecting both weather and quota related
issues.  Supplies of finished dairy products are generally
adequate to service existing contract and any spot needs.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service