European Dairy Market Summary

MADISON - Jan 19/12 - 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:  Fairly mild winter weather patterns continue to be
reported throughout Western Europe.  Temperatures are cold, but
snowfall is limited.  Lack of snowfall, thus moisture for spring, is a
concern for farmers and dairy producers.  Although concerned at this
time, farmers and milk handlers indicate that February and March are
still ahead and measurable snowfall will probably occur which will
dispel any moisture concerns.  Milk production continues to increase
in most Western European regions.  Often, milk volumes are running
heavier than last year at this time.  With milk seasonally increasing,
producers in some countries (Ireland and Austria) will be closely
monitoring their milk output as the milk quota yearend nears.  Early
projections for milk output in France are that total volumes will be
very near quota levels, but will probably stay within.  Manufacturing
schedules are also on the increase.  Traders and handlers are
reporting that sales activity remains quiet, although some buyers have
maintained a presence in the marketplace throughout the yearend
holidays and remain in the market at this time.  Shipments of skim
milk powder are being reported which have developed from the recent
milk powder tender that was finalized just prior to Christmas.  The
majority, if not all, of the skim milk powder sourced out of Europe
will be delivered during the first quarter of 2012.  Total volumes
clearing out of Europe for this tender are still unknown, but many
traders and handlers are speculating that Europe is the main source
with South America being the source for whole milk powder.  The
European Dairy Commission had their first meeting of the New Year on
January 19.  No significant new developments for the dairy industry
were reported.

EASTERN OVERVIEW:  Milk output in Eastern Europe continues to hold at
seasonally low levels.  Milk producers and handlers are indicating
that noticeable increases will probably not be apparent for another 4
- 6 weeks.  Winter weather patterns in this region are being reported,
although for many, winter conditions are more favorable than other
years at this time.  Manufacturing schedules remain seasonally low,
thus quiet sales activity is being filled from inventoried stock.
Traders and handlers are indicating that buyer interest is starting to
increase.

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STAT News Service

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