European Dairy Market Summary

MADISON - Mar 27/14 - 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, as reported by Eurostat, shows EU-28 production up 5.1% from
January 2013.  Changes in January production from a year ago for selected
countries are:  France, +3.5%; Germany, +4.0%; Ireland, +2.2%; Netherlands,
+5.1%; and the UK, +11.4%.  Spring has come early to Western Europe with some
cows in Holland already on pastures.  The new quota year begins April 1 and
producers are entering the new production year with strong production,
opposite the situation last spring.  Weather, milk prices, and feed costs are
very good from the producer perspective.  Increases in milk volumes are
maximizing capacities at some plants.  Additional drying facilities are
anticipated to come on line in the near term.  Dairy product prices are under
downward pressure, due to the significant increase in milk supplies, a
stronger Euro, weaker demand from China for milk powders, and uncertainty
regarding future trade with Russia.   January EU exports were above year ago
levels for butter, skim and whole milk powder, lower for cheese and nearly
equal with levels seen the previous two years for whey.
EASTERN OVERVIEW:
Most countries in Eastern Europe are showing increases in milk production
with Poland, the largest producer, showing a 7.3% gain in January.  The Czech
Republic and Slovakia posted declines of 3.6% and 1.1% respectively.
Production is filling domestic needs and expanding supplies available for
export.  Export demand is unsettled, primarily due to the uncertainty with
Russian trade.
0930c rick.whipp@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