European Dairy Market Overview
MD_DA100

     European Dairy Market Overview

     Report 49 - Released on December 6, 2018

     WESTERN OVERVIEW:

     Milk production in Western Europe is varied by location. In some of the major milk producing
     countries, official reports of September milk production lagging last year�s volumes have
     not improved much, based on observational comments from plants in recent weeks. In some
     areas, milk production is slowly moving up from the seasonal low but is still not breaking
     out of 2017 volumes. Other areas are steady near the low point. The seasonal factor has kept
     pressure on spot milk prices in Germany, with prices up from early November as the month
     ended last Friday.
     A factor that is causing concern is lower feed stocks and the lower quality of stocks
     available. The recent drought or dry conditions led to heavier use of existing feed and
     poorer crop harvests. A result is that the dairy industry heads into winter with less, and
     poorer quality feed than is desired. Concern for the possible outcome in milk production is
     evident.
     Cheese supplies are tighter in Europe. Brisk end of year holiday demand persists, keeping
     retailers replenishing coolers. Cheese inventories are being drawn lower to keep up with
     sales interest. Demand is also strong from restaurants, as people have increased dining out
     at this festive period of the year. The demand trifecta is completed by stronger export
     interest, due both to the typical preference for European cheese from some destinations, as
     well as recent weakness of the euro.




     EASTERN OVERVIEW:

      Eastern European milk production is near seasonal lows or moving up slightly, depending on
     location.

     Information for the period November 26 -  December 7, 2018, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home