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