MD_DA100
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MD DA100 EUROPEAN DAIRY MARKET OVERVIEW

MADISON, WI. February 4, 2010 (REPORT 5)

WESTERN AND EASTERN EUROPE

WESTERN OVERVIEW:  Milk production throughout Europe remains 
seasonally low, although more signs of seasonal increases are 
once again being reported.  Winter weather conditions and 
varying temperatures are being reported throughout Europe, 
thus the start to the new milk production season is spotty.  
Traders and handlers of manufactured dairy products indicate 
that prices   are trending lower.  Stocks of dairy products 
are available for current or near term needs.  The majority of 
available stock is still from last season with minimal volumes 
of new production yet available.  Current skim milk prices are 
trending lower but still remain above intervention price 
levels.  The current term of intervention is still open until 
the end of the month and any offerings would receive payment 
under a tendering system.  March 1 is the start of a new 
intervention year and full restitution would be received for 
offerings at that time until maximum levels are attained.  As 
far as clearances to intervention, traders and handlers state 
that prices are still 10% above intervention levels, thus 
prices will need to trend lower before this possibility might 
occur.  Many continue to question when current intervention 
stocks might be released into the market.  Many feel that 
initial releases will come as food aid and then are not sure 
how or when additional offerings might be released.  At the 
February 4th Dairy Management Committee meeting, no 
significant dairy adjustments were reported.
  
EASTERN OVERVIEW:  In Eastern Europe, winter weather 
conditions continue, thus milk production remains at 
seasonally low levels.  The new milk season typically still 
has 4 - 6 weeks to go before noticeable increases start to 
develop.  Cold temperatures and winter weather conditions 
continue to be the norm for this region of Europe.  Traders 
and handlers state that stocks of manufactured dairy products 
are available, but buyer interest is slow.  They indicate that 
market conditions were steady as the new year arrived, but now 
are trending weaker.    
 
0930CT steve Schneeberger  (608)250-3204