European Dairy Market Summary

MADISON - Aug 15/13 - 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 in Western Europe are
declining seasonally and levels in most countries are trailing
year ago levels.  Milk production is even with or slightly
higher than year ago levels in Germany, Holland, Denmark, and
Ireland.   The lingering effects of hot weather conditions are
impacting milk output.  The dairy trade could potentially be
influenced by countries banning New Zealand WPC and other dairy
products because of the recent NZ WPC recall. The potential for
European processor would be for exports of WPC into China and
butter into Russia.  However, the situation is fluid and details
are evolving.  Pricing levels are higher for SMP, WMP, and whey.
The stronger Euro values continue to make exporting prices
higher.  Butter prices remain at high levels and continue to
restrict exporting.  PSA program activity is winding down with
the last offering into the current program cycle set to stop on
August 15.  Through August 4, 83,700 MT of butter have been
offered in, compared to 126,000 MT a year ago.  Demand for cream
is good and pricing levels are high.
EASTERN OVERVIEW: Milk production in Eastern Europe is reported
to be lower than year ago levels.  Declines are noted in Poland,
Czech Republic and most other countries.  The delay in the
season start and recent hot conditions have had an adverse
effect on the milk supply.  Processing plants are running on
reduced schedules.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service