European Dairy Market Summary

MADISON - May 22/14 - 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 the EU continues to be strong, but has
moved beyond the seasonal peak.  Milk volumes have leveled off in Germany and
have marginally declined in France.  Favorable weather, good margins and the
likelihood of lower farm gate prices in the future are prompting farmers to
maximize milk production.  Drying facilities are no longer operating at
capacity levels as additional dryers have come online and milk volumes have
begun to decline.  Dairy commodity markets moved lower over the past two
weeks.  According to Eurostat, March milk production in the EU-28 was 5.6%
above last year.  Changes in March production from a year ago for selected
countries are:  Germany, +4.4%; France, +5.9%; Ireland, +0.4%; Netherlands,
+4.6%; Denmark, +2.4%; Spain, +1.8% and the UK, +12.3%.  The Eurostat
estimates milk production EU-28 2013/14 quota year at 2.6% above the previous
year.
EASTERN OVERVIEW:  Eastern Europe milk production is at the seasonal peak.
Most dryers are working at near capacity.  Skim condensed loads continue to
be transported into the region from the west, but at lower volumes than two
weeks ago.  Lower dairy commodity prices across the board have improved
export interest.  March milk production, as reported by Eurostat, shows
Poland 7.3% over year ago levels.  The Baltic states of Estonia, Latvia and
Lithuania recorded increases of +8.9%, 12.3% and 6.5% respectively. Declines
in Eastern Europe production occurred in the Czech Republic (-2.0%) and
Slovakia (-0.3%).
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