European Dairy Market Summary

MADISON - Apr 10/14 - 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 continues to show robust increases compared to year ago
levels.  The new quota year has started with good weather and good producer
margins, prompting increased milk volumes from the EU.  Some areas are in
need of rain to promote forage growth.  Manufacturers of milk powders
continue to dry at maximum capacity.  The upcoming holidays and related
manufacturing plants shut downs, will severely tax drying operations.  Excess
milk supplies are flowing into cheese vats and are causing increased cheese
production.  Concerns over the effects of cheese production expansion on farm
milk prices are growing, especially when adding in the uncertainty regarding
Russian exports.  Cheese prices in the EU are said to be under continued
downward pressure, even after recent declines.  The declines in EU cheese
prices have sparked some additional export interest.  Producers acknowledge
that peak milk prices are behind them and anticipate lower prices in the
coming months.  Dairy product prices have declined as global demand has
diminished in the face of growing supplies in the northern hemisphere.
EASTERN OVERVIEW:
Milk production in Eastern Europe is increasing along the seasonal trend with
volumes above year ago levels in most areas.  Poland continues to show the
largest volume increases.  Excess skim milk concentrate volumes from other
areas are being channeled to Poland.  Exports to Russia have been ongoing,
but will be diminished as Moscow will soon block dairy imports from a major
Polish manufacturer.
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