European Dairy Market Summary

MADISON - Jun 20/13 - 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 trends are steady to lower
for most milk producing countries.  Volumes are declining from
the seasonal peak.  For the EU, April milk production was 3.1%
lower than April 2012.  In May, many countries were noting the
milk volumes were lower than a year ago, yet narrowing the gap
to year ago levels.  Current conditions have been generally
favorable.  Temperatures are moderate with only some relatively
few hot days noted.  Milk prices in most countries are rising,
helping with profitability and thought to allow milk output to
grow.  The impact of the wet flooding and wet conditions remain
in Germany, yet the scope is limited to specific locations.
Butter movements into the Private Storage Assistance (PSA)
program are at 54,700 MT through June 9, down 40% from last year
and 13% lower than two years ago.  At current pricing, butter
producers are willing to sell butter and not hold volumes beyond
future needs.  Dairy product prices are slightly higher.  Gains
are noted because of the stronger Euro.  However, this is having
a negative impact on exporting.  Demand is light to fair for new
business with product moving out from prior sales.
EASTERN OVERVIEW: Eastern European milk volumes are steady to
slightly lower.  Weather conditions are generally favorable.
Milk price gains are positive to farmer incomes.  Processing
plants are holding schedules to plan.  Information sources are
indicating only limited issues surrounding flooding and wet
conditions.
Notice:  Report 27 will be released at 1:00pm CT on Wednesday,
July 3rd, in advance of a U.S. holiday.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service