MD_DA100

     European Dairy Market Overview

     Report 3 - Released on January 21, 2021


     WESTERN EUROPEAN OVERVIEW:

     Western Europe sources report that 2021 began with milk production lower than one year
     earlier. In Germany the seasonal increase slowed, with estimates that first week January
     milk production dipped slightly lower than the prior week.

     EU milk production January – November 2020 increased 1.7 percent from January – November
     2019 according to CLAL data made available to USDA. Among some of the top milk producers,
     the percentage changes January – November 2020 compared with January – November 2019 are
     Germany, +0.5 percent; France, +0.6 percent; and Netherlands, +1.3 percent.

     Cheese demand in Western Europe is stronger than most manufacturers had expected. Especially
     high retail demand for cheese is noted, fueled by store promotions of cheese. Equally
     surprising is that food service demand is higher than had been expected, notwithstanding
     COVID-19. Strong contracting will keep cheese production active and stocks low. Cheese
     manufacturers would take on extra milk as it was available, but they are mostly relegated to
     contracted volumes.

     EU cheese production January – November 2020 increased 1.6 percent from January – November
     2019 according to CLAL data made available to USDA. Among some of the top cheese producers,
     the percentage changes January – November 2020 compared with January – November 2019 are
     Germany, +2.4 percent; France, -1.9 percent; and Netherlands, +2.8 percent.

     EU cheese exports January – November 2020, 862,000 MT, increased 6.6 percent from January –
     November 2019 according to CLAL data made available to USDA. The United States is the second
     largest importer of EU cheese during this period.


     EASTERN EUROPEAN OVERVIEW:


     Polish milk production January – November 2020 increased 2.4 percent from January –
     November 2019 according to CLAL data made available to USDA. Among other dairy products,
     Polish percentage changes January – November 2020 compared with January – November 2019 are
     butter, 8.0 percent; SMP, 5.7 percent; WMP, -11.9 percent; and cheese, +3.4 percent.




     Information for the period January 11 - 22, 2021, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov