European Dairy Market Summary

MADISON - May 23/13 - 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:  Cooler conditions are prevalent over much of
Western Europe and the slow start of the spring season is
delaying pasture and crop growth.  Milk output remains muted and
overall levels are tracking several percentage points behind a
year ago.  The milk season is moving towards peak levels, yet
the concern is over the length of the shoulder period after the
peak.  Processors are ably managing the milk supplies.  January
- March milk production in the EU was running 1.1% lower when
compared to the prior year.  Current output remains lower than a
year ago in France, the United Kingdom, and Ireland to name a
few countries.  There are indications that weekly output in
Germany is also tracking slightly behind a year ago.  Demand for
fluid milk is stable.  Milk pricing is steady to higher, where
adjusted for higher finished product market trends.  Dairy
product prices moved slightly lower.  The market tone is more
unsettled as buyers are taking a more wait and see attitude.
Their hope is for lower future pricing before contracting for
later in the year needs.  The lower currency rate is more
favorable for export sales, yet the relative pricing values and
subdued demand are countering that.  Private Storage Assistance
(PSA) butter intakes through May 12 total nearly 38,000 MT.  The
volumes are running about half the levels of a year ago.
EASTERN OVERVIEW: Eastern European milk output trends are
falling off from year ago levels, yet at a slightly less severe
drop than of the Western countries.  The cooler start to spring
is impacting the milk flow.  Processing plants are working well
and handling the milk supplies.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service