European Dairy Market Summary

MADISON - Apr 25/13 - 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 trends
remain lower than a year ago due to the lingering effects that
wet and cold weather conditions are having on milk cows and the
start of pasture and crop growth.  Temperatures have moved
higher in the past week and are nearing normal averages,
providing more of a glimpse of springtime.  Current week milk
trends are turning to positive changes when compared to a year
ago.  Yet, March milk production indications are showing that
Germany, France, Ireland and the United Kingdom, are all
trailing a year ago.  The concern among producers is that the
slow start to the milk season may not be able to be captured
during the rest of the season.
Private Storage Assistance (PSA) butter movements into the
program, at 24,000 MT since March 1, compare to over 41,000 MT
in 2012 and 25,000 MT in 2011.  The market is absorbing
additional butter this year and, at current prices, producers
are willing to sell.  Dairy product prices trended higher this
reporting period, yet increases were moderating as this week
progressed.  Demand slowed as buyers become covered for at least
short-term needs.
EASTERN OVERVIEW: Eastern European milk production levels are
generally trending lower.  The lingering winter-like conditions
are tempering any growth potential.  High feed costs are
limiting supplemental feeding at current milk prices.  Poland
milk output is also being affected by decision surrounding quota
considerations.  Milk output in March is indicated to be lower
than a year ago.  Corresponding dairy product output is also
lower.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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