European Dairy Market Summary

MADISON - Aug 29/13 - 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 mostly favorable
across a wide range of countries in Western Europe.  While
official numbers are not out for July, reports are that milk
production is higher than last year in Germany, the Netherlands,
France and England.  Current weather conditions are conducive to
milk gains.  Higher milk prices and lower feed costs are also
contributing factors.  Most countries have seen milk intakes
grow and those that had been well below year ago levels, have
now seen milk grow closer to the mark of a year ago.  The gains
have allowed processors to catch up on production of products
that have been delayed and for others to better maximize
returns.  Dairy product prices are mostly steady to higher.
Demand is fair to good for current offerings and buyers are
looking to secure current and future needs.  The higher Euro
values versus other currencies continue to make EU sourced dairy
products more expensive.  The relative prices are making
exporting more challenging.  There is a strong demand for cream
as manufacturers make additional products.  PSA butter
clearances for the program year ending August 15 were 89,321 MT,
down 33% from the 133,306 MT in 2012, and down 15% from the
105,705 MT in 2011.
EASTERN OVERVIEW:  Eastern European milk production trends are
lower on a seasonal basis, yet several countries are now
recording volumes above a year ago.  In July, milk production in
Poland was 2.8% more than July 2012.  Additionally, output of
cheese and butter are above a year ago.  Processing plants are
able to handle the current milk supplies.  Demand for dairy
products remains fair to good with clearances to both local and
export channels.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service