European Dairy Market Summary



MADISON - Feb 2/12 - 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 across Western European countries is steady to
trending higher over the past few weeks.  Many countries are seeing
milk output at levels above a year ago for the similar period.
Reports are noting that milk volumes were higher in December versus
year earlier for: Germany, France, Austria, Netherlands, and the
United Kingdom.  In Germany and other Western European countries,
current, bitterly cold temperatures are being recorded.  Farmers and
processors are monitoring the situation to see what effects the
conditions are having on milk cows and production.  Milk prices have
remained relatively high.  Feed prices have stabilized and the
positive margins are creating opportunities for milk growth.  Plant
capacity is adequate to handle the planned manufacturing of the
product mix.  The Euro has strengthened over the past two weeks and
has begun to close down some export opportunities that had opened.
The next European Dairy Commission meeting will be February 16.
Private Storage Assistance (PSA) program will open on March 1.  The
Commission will announce pricing and volume at the February 16th
meeting.  Expectations are that butter will be entered into PSA upon
the opening.
EASTERN OVERVIEW:  Cold weather conditions are prevalent over much of
Eastern Europe.  The impact on milk production is being assessed, but
many handlers expect milk receipts to decline.  Milk production was
higher than a year ago in December in Poland with the yearly total
surpassing year ago levels.  Dairy product demand is fair for the
current, seasonally limited offerings across the finished product
spectrum.  More whey powder offerings are being made into export
channels as pricing levels are favorable for international buyers.
0930CT Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service