MADISON - Mar 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: Milk production remains above year ago levels, but the rate of increase has slowed significantly, compared to last year. Export prices for most dairy commodities moved lower as a majority of buyers are unwilling to purchase products in a downward trending market. Uncertainty persists regarding milk production volumes going into the non-quota era beginning in April. Many members of the industry had previously expected a strong start to the new season, as many producers expanded herds and have heifers ready to come online, but the pullback in production, due to levee payments and lower farmgate prices, have lowered some of those expectations. The European Commission has extended the payment period for those states exceeding their quota volumes, allowing payments to be spread out over a three year period, interest free. The Commission also extended the PSA program for butter and SMP to at least the end of September. EASTERN OVERVIEW: Eastern European milk production expansion has been restricted compared to last year. Producers in Poland and some of the Baltic States have pulled back on production due to levee payment concerns. Other Eastern European states are below year ago production trends due to lower farmgate prices and margins. Finland's production trend is below year ago levels and is a response to the Russian ban. 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
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