MD_DA100
DA
MD DA100 EUROPEAN MARKET OVERVIEW
MADISON, WI.  September 14, 2017 (REPORT 37)

WESTERN OVERVIEW:

       Although milk production across much of Western Europe is still 
showing signs of seasonal declines, current milk intakes appear to be 
heavier than those of last year. In the Netherlands, however, milk 
production is below that of 2016, mostly due to reductions in cow 
numbers to meet new phosphorus regulations. In Ireland, there is more 
expansion of the dairy herd.
       Dairy markets continue to be driven by strong demand for cheese 
and butter. With the end of summer holidays across Europe, cheese 
demand has increased somewhat on the continent. Cheese production is 
in balance with demand and cheese prices are stable. Some dairy 
contacts suggest the heavy production of cheese and lower milk volumes 
are also keeping butter production in check.
       Spot prices for loads of milk in various countries have improved, 
outpacing spot prices from the last three years at this time. Some 
dairy contacts suggest this, coupled with strong cheese and butter 
demand, may encourage more milk production across Europe.
	According to Eucolait, the EU was the only major dairy exporter 
to significantly increase its export share over the last four years. 
The strong euro is currently creating some challenges in export 
markets, but the Eurpean Commission is working on a number of trade 
agreements to broaden trade opportunities.


EASTERN OVERVIEW:

       Milk production in Eastern Europe is seasonally declining. ZMB 
reports lower cheese production volumes as well in Belarus and Russia. 
       The Deep and Comprehensive Free Trade Agreement (DCFTA) between 
the EU and Ukraine went into full effect. The largest result of the 
aggreement may be for traders, who have seen a large increase in 
demand for Ukrainian butter.



0930c mike.bandli@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home