MD_DA100

     European Dairy Market Overview

     Report 15 - Released on April 12, 2018

     WESTERN OVERVIEW:

      Observers in Western Europe believe that late March milk production, while increasing
     seasonally, is also slightly higher than last year at the same time. At least this is an
     increase, following recent set backs due to weather factors. The strength of milk prices is
     noted as a factor resulting in fewer cows in Germany being slaughtered. Milk prices in
     Germany increased in 2017 to a three year high, according to AMI Markt Woche Milch. This is
     expected to continue to help keep milk production moving up in Western Europe, recognizing
     Germany as a major producing country.
      Cheese manufacturers are pleased with firmer prices. They struggle to try and stay ahead of
     lower stocks to fill orders. Manufacturers are taking all of the milk they can procure.
     Demand is brisk, both within Western Europe, as well as for export. Cheese is being made
     with confidence that there are eager customers.
     Cheese exports from the EU during January 2018, compared with January 2017, increased 2
     percent, according to Eurostat. The top three export destinations, percentage change from
     January 2017, and January 2018 exports in metric tons are: USA, -8.0 percent, 8,952 MT;
     Japan, -17.0 percent, 6,414 MT; and Switzerland, +16.0 percent, 4,711 MT. Current export
     activity is strong.



     EASTERN OVERVIEW:

      Poland is actively cultivating new dairy export markets in China. A milk promotion program
     funded by EU funds is backing the effort. With Poland being among the top milk producing
     countries in the EU, and with production increasing, export activity is viewed as important.
     Products featured include flavored milk, yogurt, milk powders and cheese. The efforts have
     two aspects. First, help Polish dairy processors with export activities. Second, increase
     awareness of Poland as a milk and milk product source within China through trade shows,
     events, exhibits, and trade missions.

     Information for the period April 2 - 13, 2018, issued biweekly

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

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home