European Dairy Market Summary

MADISON - Aug 1/13 - 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 is declining seasonally across
most countries.  Production in Germany and Ireland is trending lower
on a week-to-week basis.  Indications are that current receipts are
higher than year ago levels.  The reversal of the impact of poor
conditions is welcomed as processors have milk to manufacture.  There
were early concerns about not being able to make and market full
product lines.  Milk production in France has stayed higher and at
levels just short of a year ago.  Across Europe, higher farm milk
prices and more reasonable feed cost have been welcomed.  Milk
production responses to the conditions has been favorable, with the
extension of milk volumes over the shoulder past the peak likely has
been the result.  The dairy product markets are mostly steady to
slightly higher compared to recent weeks.  The marketing sector
is quiet and has slowed down with widespread vacations and
holidays occurring across Europe.  High finished product prices
and the stronger Euro are making exporting of dairy products
more challenging.  Butter movements into the PSA program
continue at a slower pace than a year ago, currently topping
81,400 MT for the current program period, down from 122,600 MT a
year ago.  Offerings into the PSA can be made through August 15.
EASTERN OVERVIEW: Milk output declines are noted across most
countries in Eastern Europe, reflecting weather conditions and
the time in milk for cows.  Processors are making products of
greatest need.  Products are available to fill contracted needs;
more limited for short term sales.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service