European Dairy Market Summary

MADISON - Jul 3/13 - 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 are variable across
many countries in Western Europe.  Weather conditions have
stabilized following periods of wet and hot weather.  The
relative levels of the milk supply are closing the gap and milk
supplies are closer to year ago volumes.  This is helping
processors to reestablish product mixes.  Higher milk prices are
allowing for supplemental feeding at the farm level if
necessary.  Pasture conditions and feed crop growth are
variable, but are fair to good.  Processors are able to handle
the current milk supplies.  There is a good internal demand for
milk and dairy products.  Demand for fresh milk and cream is
strong.  Relative high export pricing levels for finished dairy
products are making the execution of exporting more difficult.
The fluctuating EURO values in comparison to the US Dollar
continue to impact export values and volumes.  Butter movements
into Private Storage Assistance (PSA) are 62,750 MT through June
23, about 2/3rds of the volumes of a year ago.  The PSA accepts
butter through August 15.
EASTERN OVERVIEW: Eastern European countries are seeing milk
production trending slightly lower.  Many locations are seeing
the gap in output shrink to be closer to year ago levels.  The
impact of recent weather condition, wet and heat, has been
marginal overall.  Seasonal declines are noticed.  Higher milk
prices at the farm level are being welcomed.  Milk processing is
being handled well.  The product mix is along planned levels.
Dairy product supplies are in good balance and meeting current
trade needs.
1300c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service