European Dairy Market Summary

MADISON - Mar 5/15 - 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:
Milk production volumes continue to reflect the efforts of producers
restricting their herd's milk production in order to reduce their over quota
levee liability.  Market participants are uncertain how milk production will
react to the upcoming non-quota environment.  Market activity has slowed for
most or all dairy commodities as buyers have their short term needs covered
and are willing to wait for the eventual increase in milk and commodity
production in April.  Total 2014 exports for the EU-28 were released with SMP
exports setting an all-time high.  Yearly increases were also noted for WMP
and Butter.  Whey exports saw a marginal decline.  Estat - Newcronos reported
EU-28 total 2014 milk collections 4.6% higher than 2013.  Various member
states showed the following milk delivery increases for 2014 compared to
2013: Germany, 3.5%; France, 5.7%; UK, 8.3%; Belgium, 6.3%; Italy, 3.1%; and
Ireland, 4.3%.  Total 2014 milk delivery data showed increases for all
countries in Western Europe with the exception of Greece -5.1%.
EASTERN OVERVIEW:
Eastern European milk production increases are slowing as some producers in
Poland are reducing their milk production as they near or exceed quota
levels.  Total European milk deliveries for 2014 reported by Estat -
Newcronos, showed the following year over year changes for selected
countries: Poland,+6.7%; Lithuania, +7.2%; Latvia, +9.4%; Estonia, +6.3%; and
the Czech Republic, +1.4%.  According to Eurostat, Poland's 2014 milk
production increases resulted in the following dairy product production
increases: butter, 4.2%; SMP, 49.9%; and WMP, 11.6%.
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