European Dairy Market Summary

MADISON - Apr 11/13 - 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 levels in Western European
continue to trend below a year ago in the majority of countries.
The biggest factor is the lingering wintry weather conditions
across most of the major milk producing countries.  Germany,
Ireland, France, and the United Kingdom are noted to be tracking
lower.  The impacts of higher dairy product prices and the
subsequent milk price gains are welcomed by milk producers.
Fresh milk product sales are indicated to be hampered by cold
weather.  Prices for skim and whole milk powders are again
higher to sharply higher.  The impact of higher prices in other
regions has buyers searching for countries with offerings.
Local buyer interest has also increased as those buyers seek
coverage.  Butter prices moved higher with good demand noted for
local buying needs.  Current pricing levels are limiting
exports.  In March, butter movements into the Private Storage
Assistance (PSA) program totaled 17,000 MT, down from nearly
32,000 MT a year earlier.  The current high pricing points and
good demand are major reasons for the downturn in shipments into
the PSA.  Dry whey pricing is higher.  Buyer interest is good
for the food quality, but met with lighter offering volumes.
Demand is also good for feed quality and those prices are nearly
equal.
EASTERN OVERVIEW: Milk production in Eastern European remains at
below year ago levels for most countries and has limited growth
for others.  Snow and cold conditions are reported to be
impacting the milk flow in Poland.  High feed costs are
restricting supplemental feeding.  Higher dairy product prices
are being welcomed.  Offering of finished dairy products are
most often light.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service