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
STAT News Service