European Dairy Market Summary

MADISON - May 14/15 - 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:  Current milk production continues to lag behind last year,
but the week to week seasonal increases in milk deliveries are narrowing the
differential between year ago levels.  Warmer weather across the major dairy
production regions of Western Europe has brought about good forage growth and
accelerated milk production increases.  Farmgate milk prices remain low and
are not prompting farmers to initiate actions to stimulate milk production.
Many cows have recently calved and will come online.  Export prices for most
dairy commodities have declined as demand from Russia, China and other export
destinations are below year ago levels.  EU milk production in March,
according to early estimates by ZMB, has volumes 1.8% below year ago levels.
EASTERN OVERVIEW:  Eastern Europe milk production is slowly increasing
towards the seasonal peak, which is still weeks away.  Early March milk
production estimates, from ZMB, show Poland and the Baltic States 1% and 2%
below year ago levels respectively.  The declines were mostly attributable to
the efforts of producers to restrain production as quota levels were
approached or exceeded.  Most other Eastern Europe countries, where exceeding
milk production quotas were not a concern, March estimates were above year
ago levels.  According to Eurostat, Poland's February 2015 production of
various dairy commodities showed the following percentage changes compared to
February 2014: butter, +21.6%; SMP, +16.4%; and WMP, -50.6%.
0930c rick.whipp@ams.usda.gov 608.557.7004
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