European Dairy Market Summary

MADISON - Jun 19/14 - 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:
Western European milk production remains robust with producers experiencing
good margins and encouraged to produce as much milk as possible, prior to
anticipated milk price reductions. According to ZMB, April milk production
estimates for the EU-28 were on average 7.3% above year ago levels and 3.7%
higher compared to April 2012.  The strong April increase over last year is
as much a comment on last year's weak start to milk production as it is on
this year's strong start.  Weekly production reports from Germany, France and
the United Kingdom in May have shown declines in the growth rates, compared
to the previous month.  These declines are expected to continue through June.
According to Eurostat, January-April 2014 export data showed the following
percentage changes for various dairy products compared to year ago levels;
skim milk powder, +66%; butter, +33%; whole milk powder, +33%; whey, +5.2%
and cheese, -1.3%.  Russia, a major importer of EU dairy products, recorded a
1.2% decline in milk production during the first four months of 2014,
compared to last year and a 4.7% decline compared to two years ago, according
to the Russian Statistical Office.  Despite the Ukrainian political situation
and devalued Ruble, Russia remained a leading destination for EU exports of
butter and cheese in the January-April period, according to data released by
Eurostat.
EASTERN OVERVIEW:
Eastern European milk production remains very strong and near peak seasonal
levels.  Cheese and whey production have increased as a result of the
increased milk volumes.  Drying facilities are operating at near capacity
levels.  The number of skim concentrate loads moving into Eastern Europe has
declined.  Export interest for whey remains good.
 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