MD_DA100
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MD DA100 EUROPEAN DAIRY MARKET OVERVIEW

MADISON, WI. May 9, 2013 (REPORT 19)

WESTERN AND EASTERN EUROPE

WESTERN OVERVIEW:  Milk production in the EU-27 in March was 
2.3% less than a year earlier.  Currently, output is beginning 
to develop at incrementally higher levels across most countries 
in Western European.  Weather conditions have been more 
seasonal.  Temperatures are warmer and drier periods have 
materialized.  The change is allowing for pasture growth and 
more intense grazing.  Hay crop growth is also being welcomed as 
farmers seek to utilize the new season's crop.  The patterns are 
about four weeks behind normal.  As milk output builds, 
processing plants are increasing production schedules.  There is 
a diverse product mix.  Trade sources are stating that weekly 
milk production levels are above a year ago in several countries 
that have been tracking below a year ago for many months.  The 
concern is that the peak will be reached sooner than normal and 
not last.  Fluid milk demand and interest for domestic consumer 
products are steady to higher.  

Dairy product prices are steady to lower, reflecting softness in 
international markets.  The changes follow sharply higher prices 
in recent months.  Buyers are more comfortable with short-term 
positions and are less aggressive.  Private Storage Assistance 
(PSA) butter intakes in the EU are running at about 57% of last 
year's level, totaling 34,500 MT from March 1 to the first week 
of May. 

EASTERN OVERVIEW: Eastern European milk production ranges from 
slightly lower to higher than a year ago.  Incremental increases 
are being noted as seasonal patterns develop.  Plant schedules 
are being increased to handle the milk growth.  March milk 
production in Poland was down 1% versus a year earlier.   

0930c Butch.Speth@ams.usda.gov 608.278.4152