MD_DA100

     European Dairy Market Overview

     Report 37 - Released on September 14, 2023

          WESTERN EUROPEAN OVERVIEW: Western European milk production, although trending
     seasonally lower, has been at or slightly above previous year levels for most of the year.
     In general, stronger milk production in the northern parts of the continent has offset lower
     production in the southern parts. As the summer heat abates, the weekly decline in milk
     output has slowed. Favorable weather conditions have aided cow comfort and supported milk
     output as the region approaches the typical nadir of the milk production curve. That said,
     some analysts anticipate that Q4 milk volumes may fall below previous year levels in some
     cases.

          Industry contacts share the sentiment that there is plenty of milk available, but
     demand for dairy ingredients is weak. Contacts say the return of Europeans from summer
     holidays has spurred on local demand for consumer goods such as cheese and butter. However,
     they add that there is limited demand for industrial butter and milk powders. With the
     scenario of sufficient milk supplies and generally weak dairy demand, they are perplexed
     that milk pay prices can hold steady. The monthly average farm-gate milk price in the United
     Kingdom increased slightly between June and July, and the provisional August milk pay price
     for the EU-27 is 43.58 euros per 100kg, down only slightly from July. In addition, Italian
     weekly spot milk prices have maintained levels near farm-gate pay prices for the last few
     months. Manufacturers may be looking at current milk intakes, but wanting to assure their
     milk supply needs are met into the future.

          Several EU Commission proposals that were to be published this month have been delayed.
     Two proposals, the sustainable food systems legislation and the animal welfare legislation,
     are part of the EU Farm to Fork Strategy. It is unclear whether the Commission will enact
     any further actions on the two proposals during the current legislative period.

          EASTERN EUROPEAN OVERVIEW: Like Western Europe, Eastern European milk production is
     following seasonal declines in milk production. Milk output in Poland, one of the top
     Eastern European milk producers, has continued at levels above 2022 milk output levels.
     According to CLAL data made available to USDA, July 2023 cows' milk delivered to dairies in
     Poland was 1,121,000 MT, up 1.4 percent from July 2022. Year-to-date milk deliveries through
     July 2023 in Poland, 7,723,000 MT, increased 1.5 percent compared to year-to-date milk
     deliveries through July 2022. The average farm-gate milk pay price in Poland for July 2023
     was 42.18 euros per 100kg, down .97 euros per 100kg compared to June.



     Information for the period September 4 - 15, 2023, issued biweekly

     Secondary Sourced Information:

          NOTICE: AMS Dairy Program is excited to have an integral role in hosting the
     International Dairy Federation's World Dairy Summit 2023 which will take place Monday
     October 16 through Thursday October 19, 2023, at Chicago's McCormick Place. Onsite
     registration is available. Please visit the World Dairy Summit website to learn more.
     Helpful Links:
     World Dairy Summit 2023 Website: https://idfwds2023.com/
     International Dairy Federation: https://fil-idf.org/

     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