MADISON - Jul 2/14 - 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 continues its seasonal downward trend, accelerated in some areas by periods of hot weather. Current milk production is viewed as strong and continues to exceed year ago levels. Dairy producer margins are beginning to narrow as heavy commodity production has lowered commodity prices and caused decreases in farmgate prices. The 2014/15 quota levels have not expanded and with the likelihood of lower margins, producers will be more cautious not to exceed quota levels this year. Eurostat reported EU-28 January-April 2014 milk deliveries are 6.1% above year ago levels. January-April deliveries compared to one year ago for selected countries are: Germany, +4.2%; France, +6.3%; Ireland, +1.6%; Netherlands, +5.1%; Denmark, +4.1%; Spain, +1.5% and the UK, +13.0%. EASTERN OVERVIEW: Eastern European milk production has moved beyond the seasonal peak, but milk supplies remain plentiful. Skim concentrate supplies are no longer being moved from Western Europe to Eastern Europe at discount prices. And, as a result, Eastern European SMP prices are now comparable with Western EU markets. January-April milk deliveries, as reported by Eurostat, show Poland 7.2% over year ago levels. The Baltic states of Estonia, Latvia and Lithuania recorded increases of 9.0%, 12.2% and 6.7% respectively. The Czech Republic declined 1.3%. 1300c 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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