European Dairy Market Summary

MADISON - Sep 11/14 - 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 across much of Western Europe continues to decline
seasonally, while the pace is maintaining a margin over year ago levels in
the major milk producing countries.  The second half of 2013 had more
favorable milk output, so percentage changes in the second half of 2014 will
be made against a bigger base.  Weather impacts are minimal with conditions
favorable for milk cows.  Pay prices for milk are good and farmers are
responding.   Corn silage harvesting is active.  Lower prices are noted for
Western European dairy products.  Weaker trends and prices in the Oceania
region are influencing the market more than higher U.S. dairy product
pricing.  World buyers are often taking longer times in negotiations and are
very cautious in securing needs in the current unsettled and weak market
environment.  The Russian ban on importing dairy products continues to cast a
large shadow over the dairy markets, directly impacting the listed countries
and indirectly affecting those countries not on the list.  The E.U.
Agriculture Commission has announced emergency market support systems,
including the utilization of the PSA - Private Storage Aid - for butter, SMP,
and certain cheeses, to assist processors.  Additionally, the Commission
extended the intervention program period to the end of December.
EASTERN OVERVIEW:
Milk production is following recent trends across the Eastern European
countries, generally showing modest gains versus year ago levels.  Weather
conditions remain fair to good for both cows and crops.  Milk prices are
being adjusted lower in several countries, the result of lower dairy product
pricing.  The Russian ban on dairy product imports is affecting the broad
scope of countries and former trading partners.
0930c butch.speth@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

---

STAT News Service