STAT Communications Ag Market News

European Dairy Market Summary

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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