European Dairy Market Summary

MADISON - Dec 4/14 - 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 European milk production is mixed with some countries showing steady
production, having just come off the seasonal low point, while other
countries are showing marginal increases.  Farmgate milk prices are declining
and for those producers who are over quota, there is serious consideration
being given to reducing milk production soon.  Various strategies will be
implemented by dairy producers to not only avoid or reduce super levees, but
also how to best position themselves for the start of the non-quota season in
2015.  Various European dairy industry members feel it is likely the European
Commission will extend the PSA program for butter and SMP through February
2015.    Manufacturing milk supplies are expected to increase over the
yearend holiday period.  The weaker Euro, compared to the U.S. Dollar, over
the past number of weeks has made European dairy commodities more
competitively priced and improved export interest.  China in particular has
shown and continues to show interest in purchasing increased volumes of
various dairy commodities from Europe.
EASTERN OVERVIEW:
Eastern European milk production is at or just beyond the seasonal low point.
Cream and milk volumes continue to be shipped to Belarus from Eastern Europe.
The European Commission has announced a 28 million Euro, approximately $40
million U.S. Dollar, aid package for dairy farmers in Estonia, Latvia, and
Lithuania.  The financial aid will assist individual farmers who have
encountered liquidity problems brought about by the Russian embargo.  Some
dairy producers in Finland were unhappy about having been left out of the aid
package scheme.
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