European Dairy Market Summary

MADISON - May 9/13 - 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 in the EU-27 in March was
2.3% less than a year earlier.  Currently, output is beginning
to develop at incrementally higher levels across most countries
in Western European.  Weather conditions have been more
seasonal.  Temperatures are warmer and drier periods have
materialized.  The change is allowing for pasture growth and
more intense grazing.  Hay crop growth is also being welcomed as
farmers seek to utilize the new season's crop.  The patterns are
about four weeks behind normal.  As milk output builds,
processing plants are increasing production schedules.  There is
a diverse product mix.  Trade sources are stating that weekly
milk production levels are above a year ago in several countries
that have been tracking below a year ago for many months.  The
concern is that the peak will be reached sooner than normal and
not last.  Fluid milk demand and interest for domestic consumer
products are steady to higher.
Dairy product prices are steady to lower, reflecting softness in
international markets.  The changes follow sharply higher prices
in recent months.  Buyers are more comfortable with short-term
positions and are less aggressive.  Private Storage Assistance
(PSA) butter intakes in the EU are running at about 57% of last
year's level, totaling 34,500 MT from March 1 to the first week
of May.
EASTERN OVERVIEW: Eastern European milk production ranges from
slightly lower to higher than a year ago.  Incremental increases
are being noted as seasonal patterns develop.  Plant schedules
are being increased to handle the milk growth.  March milk
production in Poland was down 1% versus a year earlier.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service