European Dairy Market Summary

MADISON - Jan 2/14 - 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 in Europe continues to show signs of
seasonal increases.  A strong storm over the holiday period with high winds
did cause some flooding and transportation problems in Ireland, the UK and
the coastal regions of France.  Overall though, weather has been fairly mild
with no major interruptions to milk production.  European manufacturing milk
supplies are increasing, due to the holiday shutdowns of numerous dairy
product and food manufacturing plants.  Producer margins are at levels that
encourage milk production and expansion of operations, when possible, with
Dutch and Irish producers especially active in working to increase their
herds.  Numerous producers are willing to pay levies in lieu of increased
production.  Most dairy product supplies are tight going into 2014 with a
majority of skim milk and whole milk powder inventories committed through Q1.
EASTERN OVERVIEW:  Eastern European milk production is showing marginal
increases with Poland leading the way as countries come out of their seasonal
production low points.  Lithuanian dairy product exports to Russia are
expected to resume in January.  Imports were suspended by Russia in October,
but increased quality oversight by Lithuania and negotiations with Russian
officials, appear to have resolved most of the import suspension issues.
The whey market continues to hold steady.
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: www.marketnews.usda.gov/portal/da

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STAT News Service