European Dairy Market Summary

MADISON - May 8/14 - 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 has reached the seasonal peak in Western
Europe.  Weather conditions are optimal for milk production, pastures are in
good condition, feed costs are comparatively low and farm gate prices are
relatively high.  Together, these factors are prompting producers to maximize
milk production.  Current milk volumes are leveling off as some countries are
beyond their peak production and are not expected to retreat significantly in
the near term.  Processing plants are having difficulty processing available
milk supplies.  Some condensed skim loads are being sold at significant
discounts in order to find a home.  Drying facilities are working at capacity
with some whey drying facilities being utilized for skim milk powder
production.  Milk powder manufacturers are holding off sales at discount
prices in hope the results of a large tender will support prices.  Buyers are
only covering immediate needs, anticipating heavy production schedules will
result in lower prices.
EASTERN OVERVIEW:  Milk production in Eastern Europe is quickly building
towards the seasonal peak.  Good weather and producer margins are supporting
producers' milk production efforts.  Drying facilities with available
capacity are able to secure loads of skim concentrate at significant
discounts.  Skim milk powder is more readily available compared to Western
Europe.
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