MADISON - May 8/14 - 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 has reached the seasonal peak in Western Europe. Weather conditions are optimal for milk production, pastures are in good condition, feed costs are comparatively low and farm gate prices are relatively high. Together, these factors are prompting producers to maximize milk production. Current milk volumes are leveling off as some countries are beyond their peak production and are not expected to retreat significantly in the near term. Processing plants are having difficulty processing available milk supplies. Some condensed skim loads are being sold at significant discounts in order to find a home. Drying facilities are working at capacity with some whey drying facilities being utilized for skim milk powder production. Milk powder manufacturers are holding off sales at discount prices in hope the results of a large tender will support prices. Buyers are only covering immediate needs, anticipating heavy production schedules will result in lower prices. EASTERN OVERVIEW: Milk production in Eastern Europe is quickly building towards the seasonal peak. Good weather and producer margins are supporting producers' milk production efforts. Drying facilities with available capacity are able to secure loads of skim concentrate at significant discounts. Skim milk powder is more readily available compared to Western Europe. 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
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