MD_DA100

     European Dairy Market Overview

     Report 37 - Released on September 16, 2021

     WESTERN EUROPEAN OVERVIEW:
     Industry contacts in Europe report milk output is seasonally declining. After recovering in
     parts of Europe in July, summer heat and humidity has pressed milk volumes lower later in
     the summer. Contacts suggest milk deliveries are shrinking week to week and are below levels
     from last year. Cream and skim milk concentrate supplies are also tight. Prices for raw milk
     and cream have risen through the last couple months. In many cases, milk handlers are moving
     milk into cheese production at the expense of fluid milk, butter and milk powder production.


     Tighter milk supplies have had an impact on production and available stocks of manufactured
     dairy goods. While manufacturers can fill contractual obligations, the ability to fill added
     inquiries is limited. Processors that can fill added requests are finding logistical
     challenges to moving goods. Like much of the world, shipping containers are scarce, and
     vessel space is costly. Most product demand originates from within Europe, and export
     opportunities are quiet. However, limited trucks and drivers on the continent add to the
     logistical challenges.

     WESTERN EUROPEAN SECONDARY DATA:
     According to Eurostat data, among some of the leading Western European milk producing
     countries, the monthly percentage change of raw cows’ milk delivered to dairies for July
     2021 compared with July 2020 and June 2021 are Germany, -1.2 percent, +2.0 percent; France,
     -1.9 percent, -3.0 percent; Netherlands -3.1 percent, +0.9 percent; Ireland +3.3 percent,
     -4.6 percent; and Italy, +6.3 percent, -0.2 percent.

     EU raw cows’ milk delivered to dairies January – July 2021 is estimated at 87,053,000 MT,
     down 0.1 percent when compared to January – July 2020 EU milk production, according to CLAL
     data made available to USDA. Among some of the top Western EU milk producers, the percentage
     changes January-July 2021 compared with January-July 2020 are Germany, -1.6 percent;
     France, -1.3 percent; Netherlands, -1.9 percent; Italy, +3.3 percent; and Ireland, +6.4
     percent.

     According to CLAL data made available to USDA, provisional July 2021 raw cows’ milk
     delivered to dairies in the UK was 1.287 million tons, down 1.1 percent from July 2020.
     Year-to-date milk deliveries through July 2021 in the UK, 9.329 million tons, increased 0.7
      percent compared to year-to-date milk deliveries through July 2020.

     EASTERN EUROPEAN OVERVIEW:
     Like much of Europe, milk production in Eastern Europe is also in seasonal decline. Contacts
     report milk output is decreasing in a typical pattern. Manufacturers are reshuffling milk
     supplies to fill cheese production needs above other processing channels.

     EASTERN EUROPEAN SECONDARY DATA:
     According to Eurostat data, July 2021 raw cows’ milk delivered to dairies in Poland was
     1,067,870 MT, down 1.1 percent from July 2020, and down 0.9 percent from June 2021.

     According to CLAL data made available to USDA, January - July 2021 raw cows’ milk delivered
     to dairies in Poland was 7,455,000 MT, up 0.3 percent from January - June 2020. July 2021
     raw cows’ milk delivered to dairies in Ukraine was 871,500 tons, down 8.4 percent from July
     2020. Year-to-date milk deliveries through July 2021 in Ukraine, 5.190 million tons,
     decreased 6.1 percent compared to year-to-date milk deliveries through July 2020.


     Information for the period September 6 - 17, 2021, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@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