European Dairy Market Summary

MADISON - Jun 5/14 - 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:
EU milk production is lower with weekly declines being noted in Germany and
France.  Prices for spot loads of milk and skim condensed have stabilized,
compared to recent weeks.  Producer margins are good, and with the outlook
for lower milk prices in the future, are incentivized to produce as much milk
as possible in order to reap the current good returns.  Weather conditions
are favorable for milk production.  Skim milk powder drying facilities are
operating at near capacity.  According to Eurostat, EU 28 dairy product
production levels, for Q1 2014, showed the following percentage changes
compared to 2013; butter, +1.9%; skim milk powder, +14.5%; whole milk powder,
+8.3%; and cheese, +2.4%.
EASTERN OVERVIEW:
Eastern Europe milk production remains at/or near seasonal peak levels.
Cheese producers and drying facilities are operating at near capacity levels.
Some Western European loads of skim concentrate are being processed in
Eastern Europe.  Export interest has improved for Polish sweet dry whey.
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