European Dairy Market Summary

MADISON - Mar 13/14 - 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 patterns continue to show increased milk supplies at levels
averaging around 4% higher than a year ago for Western Europe.  The
percentage change is high in part because of poor, prolonged weather
conditions and lower milk receipts a year ago.  This year, weather conditions
remain very conducive to milk growth.  Higher milk prices and milk premiums
continue to provide incentives to increase milk output, even when weighed
against any quota penalties.  The higher milk supplies are stretching plant
capacities, making it harder to find processing room as the milk intakes move
towards the seasonal peak levels.  Dairy product prices are trending steady
to lower and reflect additional offerings and some softening of demand.  The
higher Euro values are making exporting values higher and exporting more
challenging.  However, world buyers are looking to the E.U. to secure certain
dairy products as there are seasonal limitations from other supplying
countries.
EASTERN OVERVIEW:
Milk production in Eastern Europe is trending higher for many countries.
Output is higher and above year ago levels in Poland.  New information is
limited from other countries.  Dairy product manufacturing is increasing and
offerings are being made available to local buyers and into the export
channels.  Demand is uneven as buyers assess needs against pricing.
0930c Butch.Speth@ams.usda.gov 608.278.4151
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