European Dairy Market Summary

MADISON - Feb 13/14 - 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:
Current Western Europe milk production continues to increase at volumes well
above year ago levels.  Mild winter weather, higher milk prices, herd
expansion, moderate to lower feed costs and strong global demand for milk
powders have all combined to support milk production increases.  Production
levels in some areas of Europe are approaching or exceeding year ago peak
levels.  ZMB Dairy World reported December milk production in the EU-28 up
4.6%, compared to the same period last year.  Changes in December milk output
from a year ago for selected countries are:   Ireland, +26.2%; Netherlands,
+5.4%; Germany, +3.9%; and France +5.0%.  Recently, farmers in the southern
portions of the UK have been beset with storms and flooding with additional
rains and heavy winds forecast in the coming days.  The National Farmers
Union of England and Wales is attempting to coordinate efforts to move
livestock to safety and provide dry feed.  The significant increases in milk
production have milk powder manufacturers drying at or near capacity levels.
Milk production volumes are projected to increase towards the seasonal peak,
in April-May, and will surpass milk powder manufacturing capacities, despite
expected increases in drying capacities.  Cheese production is expected to
cover the additional manufacturing needed to process the additional milk
volumes.  Milk powder export demand is improving as powder production
declines in the southern hemisphere.  Butter prices showed the greatest
decline in price as supplies have exceeded demand.
EASTERN OVERVIEW:
Eastern European milk production for 2013 did not reflect the increases seen
in the west.  The Czech Republic, Croatia, Slovakia and Slovenia all reported
milk production declines compared to the previous year.  Poland saw only a
marginal increase, 0.8%, compared to the previous year.  Severe winter
weather has reduced milk production in some regions with heavy snows and a
major ice storm in Slovenia.  Cheese and butter manufacturers continue to
receive good export interest.
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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