European Dairy Market Summary

MADISON - Feb 19/15 - 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:  Seasonal increases in milk production are weaker in some
of the major milk producing regions of Western Europe.  The likelihood of
levee payments for exceeding quota levels is the cause for the weaker trend.
This change in milk production has resulted in the expectation of tighter
supplies for butter, SMP, and WMP.  Price increases for most dairy
commodities in Oceania lend support to the firm market undertones in most
European dairy markets.  The weaker euro exchange rate continues to be a plus
for export sales.
EASTERN OVERVIEW:  Eastern European milk production is increasing, but at a
slower rate in some countries.  In 2014, Poland, Romania and the Baltic
states saw some of the largest year over year percentage increases throughout
Europe.  Poland produced over 10 million MT of milk in 2014. This was the
highest level of production since 1990.  Current production increases are
weakening in Poland, Estonia and Latvia as producers in those countries near
quota levels and the possibility of levee payments.  Lower milk prices paid
to producers have also contributed to the weaker production trend in those
countries.
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