European Dairy Market Summary

MADISON - Oct 24/13 - 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 in most countries is
approaching seasonal low points of the production year.  Volumes
are mostly higher than year ago levels, continuing the trend
that started during the summer.  The increases in milk
production are being cautiously watched as concerns about
exceeding quota levels are noted.  Trade sources note that
another factor is that higher milk volumes translate into more
dairy products, which could pressure pricing.  Farm milk
production conditions remain good as milk prices are high, feed
costs reasonable, and weather conditions have been favorable.
For 2013, EU-27 milk output is forecast to be just slightly
below 2012 volumes.  The stronger Euro value is making exporting
more challenging.  Dairy product prices are mixed.  Skim milk
powder and whole milk powder demand are light to fair for nearby
needs.  Some buyers are bidding lower prices, yet receiving
limited seller interest.  Butter prices remain high and restrict
exporting.  Internal demand is fair.  PSA butter stocks are
being utilized to supplement any market shortages.  Through
October 1, a total of 23,800 MT have moved back to the trade.
Holdings totaled 65,544 MT on October 1.
EASTERN OVERVIEW:  Eastern European milk output trends are
mostly steady to slightly higher.  The general market conditions
of tight supplies in other exporting regions are allowing
opportunities for Eastern countries to have more export business
at better pricing points.
0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: www.marketnews.usda.gov/portal/da

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STAT News Service