European Dairy Market Summary

MADISON - Apr 2/15 - 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:
Western European milk deliveries continue to reflect the restraint in milk
production by those producers who are above quota levels.  Over quota
producers are using a variety of strategies to lessen their deliveries and
levee obligations.  Most under quota producers are foregoing increasing feed
supplements to enhance milk volumes, because of the relatively low milk price
and margins.  Dairy commodity trading activity is fairly quiet ahead of the
upcoming holidays.  Most traders have a bearish outlook on the dairy
commodity markets, because of the recent price declines and do not anticipate
a significant rebound in the near term.   Estat - Newcronos reported EU-28
January 2015 milk deliveries down 0.8% compared to last year.  Various member
states showed the following January percentage changes compared to January
2014: Germany, -1.4%; France, -1.7%; UK, +1.2%; Belgium, -2.6%; Italy,
unchanged; and Ireland, -14.9%.
EASTERN OVERVIEW:
Milk production in Eastern Europe is increasing and at a rate that is
comparable with year ago levels.  Dairy commodity supplies in Eastern Europe
are increasing as manufacturers have not extensively contracted forward.
Some buyers are able to negotiate significant discounts for near term
purchases as manufacturers attempt to reduce their current stocks.  European
milk deliveries for January 2015 reported by Estat - Newcronos, showed the
following changes for selected countries compared to January 2014:
Poland,+0.9%; Lithuania, +3.3%; Latvia, -0.3%; Estonia, -5.5%; and the Czech
Republic, +3.9%.
According to Eurostat, Poland's January 2015 production of various dairy
commodities showed the following percentage changes compared to January 2014:
butter, +14.6%; SMP, +31.5%; and WMP, -42.1%.
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