European Dairy Market Summary

MADISON - Sep 26/13 - 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 trending higher across
many EU countries.  For the EU-28 in July, milk was up 2.0% and
indications are that August is up more than a year ago on a
percentage basis. Some early August production figures versus a
year ago show Germany at +3.5%, Netherlands +10.0%, and United
Kingdom +5.0%.  There are concerns about the higher production
levels and what effects that will have on quota.  Demand for
fluid milk is good and processors are willing to give up milk at
higher prices to maintain better returns.  Interest in cream is
active.  Dairy product pricing trends are uneven.  Butter prices
are trending higher, at levels that restrict exporting.  Skim
milk powder prices are slightly lower.   There is some
unsettledness to the market tone, especially into Q4.  Whole
milk powder and whey prices are mostly steady.   Demand for WMP
remains good and clearing into export markets.  Interest in whey
is variable and there is some price resistance in the market,
especially into the feed sector currently.  Cheese demand is
good and production remains full to service industry needs.
EASTERN OVERVIEW:  Eastern European milk production is noted to
be mixed across reporting countries.  August output in Poland is
stated to be 0.7% higher than a year earlier.  Weather
conditions have been generally favorable and higher milk pricing
is working through to the farm level.  Dairy product
availability is seasonally light to moderate.  Buyer interest is
fair to good across categories.
0930c Butch.Speth@ams.usda.gov 608.278.4152

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