MADISON - Dec 4/14 - 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 is mixed with some countries showing steady production, having just come off the seasonal low point, while other countries are showing marginal increases. Farmgate milk prices are declining and for those producers who are over quota, there is serious consideration being given to reducing milk production soon. Various strategies will be implemented by dairy producers to not only avoid or reduce super levees, but also how to best position themselves for the start of the non-quota season in 2015. Various European dairy industry members feel it is likely the European Commission will extend the PSA program for butter and SMP through February 2015. Manufacturing milk supplies are expected to increase over the yearend holiday period. The weaker Euro, compared to the U.S. Dollar, over the past number of weeks has made European dairy commodities more competitively priced and improved export interest. China in particular has shown and continues to show interest in purchasing increased volumes of various dairy commodities from Europe. EASTERN OVERVIEW: Eastern European milk production is at or just beyond the seasonal low point. Cream and milk volumes continue to be shipped to Belarus from Eastern Europe. The European Commission has announced a 28 million Euro, approximately $40 million U.S. Dollar, aid package for dairy farmers in Estonia, Latvia, and Lithuania. The financial aid will assist individual farmers who have encountered liquidity problems brought about by the Russian embargo. Some dairy producers in Finland were unhappy about having been left out of the aid package scheme. 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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