European Dairy Market Summary

MADISON - Jul 18/13 - 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 output is declining along seasonal
expectations in Western Europe, but weather is not a real factor now
in hastening the decline.  Some countries, especially France, seem to
be bouncing back quite well.  Feed supplies are better and margins are
improving with better prices for milk.  Other countries are also
narrowing the gap caused by the inclement spring weather.  Pasture and
forage growth are positive for this season.  Currently, internal
demand is being called a better option than exporting.  Export
competition is strong, limiting volumes moving from Europe.  Domestic
sales are good.  The current Holiday season is impacting the product
mix somewhat, which is typical.  Butter movements into the Private
Storage Assistance (PSA) program are at 69,000 MT, down about 40% from
the previous year.
EASTERN OVERVIEW: Eastern European milk production is declining
seasonally, but at the expected rate.  Weather stress at this
time is minimal.  Farmers are responding to the higher milk
prices by making short run decisions to bolster milk output as
best they can.  Some of the milk output lost this spring is
being made up now.  Plants are running efficiently and they are
moving milk to operations offering the best return.
1300c Butch.Speth@ams.usda.gov 608.278.4152
Don Nelson donaldo.nelson@ams.usda.gov 608.278.4156

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STAT News Service