European Dairy Market Summary

MADISON - Oct 9/14 - 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 is declining along the seasonal trend, but
remains above year ago levels.  Weather conditions are favorable and cow
comfort levels are good.  Farmgate prices, have declined, but still hold a
good return for producers.  Additional price declines are expected in the
future, prompting milk producers to make as much milk as possible while the
prices are good.  The reduction in cheese production, due to the Russian ban
of EU imports, continues to channel additional milk volumes to butter and SMP
production.  The decline in the Euro, compared to the U.S. dollar, supports
European exports by making them more competitively priced.  Estat - Newcronos
reported EU-28 January to July milk deliveries are 5.8% higher than the same
period in 2013.  Various member states showed the following January to July
increases, compared to last year; Germany, 4.4%; France, 7.4%; UK, 10.2%;
Belgium, 7.9%; Italy, 3.2%; and Ireland, 7.1%.  January-July milk delivery
data showed increases for all countries in Western Europe with the exception
of Greece -4.8%.
EASTERN OVERVIEW:
Milk production in Eastern Europe has declined, but remains ahead of last
year's levels.  Weather conditions are favorable for milk production and
producer margins remain good.  Raw milk and cream loads are being transported
to manufacturers in Belarus, but actual volume totals are unavailable.
According to Eurostat, dairy product production in Poland for the January-
July period showed the following increases; butter, 1.1%; SMP, 47.1%; and
WMP, 38.5%.  European milk deliveries for January-July, reported by Estat -
Newcronos, showed the following year over year changes for selected
countries; Poland,+7.5%; Lithuania, +8.5%; Latvia, +12.4%; Estonia, +8.9%;
and the Czech Republic, -0.5%.
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