European Dairy Market Summary

MADISON - Feb 27/14 - 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:
Western Europe milk production continues to increase.  Weather conditions are
phenomenal in the region with some areas reporting conditions 4-6 weeks ahead
of the typical spring trend.  Heavy milk production and good prices for milk
powders have dryers operating at capacity levels.  Export demand for milk
powders is very active as EU prices are internationally competitive and
gaining more interest.  Near term available supplies are very limited.  Bulk
butter prices, after declining for a number of weeks, are now drawing
increased export interest.  Whey trading activity remains quiet.  According
to Eucolait, 2013 EU-28 exports showed the following year over year
percentage changes for the following products; SMP, -21.2%; WMP, -3.4%;
cheese, +2.6%; dry whey, +5.3%; butter -0.5%; AMF, +7.2%; lactose, -2.4%;
casein, -22.3%; caseinate, -4.5% and WPC80, -9.1%.
EASTERN OVERVIEW:
Milk production in Eastern Europe is behind the Western European pace, but
increasing along the seasonal trend.  Winter weather patterns are fairly
normal.  Milk powders are more readily available for the near term in the
region.  Butter and cheese exports to Russia remain active.
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