MD_DA100 European Dairy Market Overview Report 47 - Released on November 22, 2022 WESTERN EUROPEAN OVERVIEW: For several weeks, weekly milk collections in Germany, France and several other European countries have stabilized thanks to mild fall temperatures. The current milk volumes are now ahead of previous year collections, although the second half of 2021 was noted for its weak milk production. With strong milk pay prices, farmers are eager to push their cows to maximize production. Pay prices have been roughly $25 to $30/cwt through the last few months, making feeding the cows for production volumes and components more economical. Processors have plenty of milk available for the manufacture of dairy products and dairy ingredients. Current prices for some dairy commodities have weakened recently, and some market observers wonder if the processors will be able to maintain the strong milk prices paid to farmers. Industry contacts suggest that without a revitalization of dairy product demand, milk prices may come under some pressure, and processors may need to adjust the price provided to farmers for the milk. According to CLAL data made available to USDA, September EU cows' milk delivered to dairies is estimated at 11,498,000 MT, up 0.7 percent compared to last year. EU cows' milk delivered to dairies January - September 2022 is estimated at 110,174,000 MT, down 0.4 percent when compared to January - September 2021 EU milk production. Among some of the top Western EU milk producers, the January - September 2022 milk deliveries and the year-to-date percentage changes compared with January-September 2021 are Germany, 24,132,000 MT, -0.9 percent; France, 18,186,000 MT, -1.2 percent; Netherlands, 10,340,000 MT, -0.2 percent; and Italy, 9,930,000, -0.2 percent. September 2022 raw cows' milk delivered to dairies in the UK was 1,190,900 MT, up 0.1 percent from September 2021. Year-to-date milk deliveries through September 2022 in the UK, 11,587,800 MT, decreased 1.5 percent compared to year-to-date milk deliveries through September 2021. EASTERN EUROPEAN OVERVIEW: The strong pace of Eastern European milk production is continuing into the low point for the seasonal milk production year. Milk production in Poland, Belarus, and the Czech Republic has maintained growth above 2021 for much of the year. With favorable weather and mild temperatures, monthly milk production numbers are still favorable for some of the Eastern European countries. According to CLAL data made available to USDA, September 2022 cows' milk delivered to dairies in Poland was 1,022,000 million ton, up 2.6 percent from September 2021. Year-to-date milk deliveries through September 2022 in Poland, 9,705,000 million ton, increased 2.3 percent compared to year-to- date milk deliveries through September 2021. The provisional October 2022 cows' milk production in Belarus was 643,000 MT, up 1.1 percent from October 2021. January - October 2022 milk production in Belarus, 6,602,000 MT, is up 0.3 percent from January - October 2021. Late last week, Ukraine, Russia, Turkey and United Nations representatives were able to reach an agreement to extend the deal that will keep three Black Sea ports open for another 120 days. The deal will allow safe passage for the shipping of grain and fertilizers from Ukraine and Russia, two of the largest grain exporters in the world. So far, Ukraine has been able to export approximately 15.1 million tons of grain, down 30.6 percent from the amount exported at this point in the last grain season. Had an agreement not been reached, the deal may have lapsed on November 19. Information for the period November 14 - 25, 2022, 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