European Dairy Market Summary

MADISON - Dec 18/14 - 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 has moved past the
seasonal low point with nearly all countries showing at least some marginal
increases.  Demand for fluid milk and cream are good ahead of the yearend
holidays.  Farmgate prices have declined to the point where those producers
who are over quota are taking steps to reduce or eliminate over quota
production and levees.  Culling rates have increased in Europe as many
producers are culling their lower producing cows.  Germany, Belgium, the
Netherlands, Denmark and Ireland are all currently trending over quota
production levels.  According to ZMB preliminary data, January-October milk
production in the EU-28 is 5.1% higher than one year ago.  Various member
states showed the following January-October changes, compared to last year;
Germany, +4.0%; France, +5.8%; UK, +9.1%; Belgium, +6.0% and Ireland 5.9%.
EASTERN OVERVIEW:  Eastern Europe milk production is increasing.  Loads of
milk and cream going to Belarus manufacturing plants have significantly
declined.  Weather conditions are typical for this time of year and are not
seen as restricting milk production.  Milk production in Poland is currently
trending over quota limits.  Producers over quota will likely take steps to
reduce milk deliveries to avoid super levee fees.  According to ZMB
preliminary data, January-October milk production in Poland is 7.7% higher
compared to a year ago.
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: http://www.marketnews.usda.gov/mnp/da-home

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STAT News Service