European Dairy Market Summary

MADISON - Jan 16/14 - 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 is increasing at accelerated
levels, due to good milk prices and margins, mild weather, and expanding
herds in some countries. Milk production totals for November 2013 showed year
over year increases of 3.8% for France and 19.7% for Ireland.  For December,
the UK realized a 10.7% increase above the previous year.  Producers in some
countries are going over quota levels and willing to pay the levy rather than
reduce production.  Prices and demand on the liquid market have weakened
following the yearend holidays.  Dairy product market activity has increased
going into 2014.  Demand is good for most products.  Supplies continue to be
fairly tight with a majority of supplies committed in Q1.  Prices are stable.
EASTERN OVERVIEW:  Eastern European milk production is also expanding with
estimated increases in the 2-3% range.  Weather in Eastern Europe is also
mild and supportive of milk production.  Russian demand for butter, cheddar
cheese and whey is providing export opportunities for Eastern manufacturers.
Russia has begun to lift its ban on Lithuanian dairy products.
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

---

STAT News Service