European Dairy Market Overview at the End of April 2019

Report 17 – Released on April 25, 2019

Recent seasonal milk production in Germany has been slowly increasing, slower than desired. The weekly increase was believed to be about 0.2 percent by ZMB early reporting. In France, the seasonal increase lagged this time last year. Some observers believe that producer decisions to cull herds, as well as lower quality feed, are factors underlying the current situation. It is hoped that decent pricing for many commodities will move the pricing system back to producers and stimulate efforts to increase production. Increasing pasture availability is hoped to also give a boost to production in the near future.

EU milk production during January-February 2019, 24.96 million MT, was 1.0 percent lower than January-February 2018 according to Eurostat. This is a positive trend from January YOY data. February 2019 production was only 0.4 percent below February last year in contrast with January 2019, which was 1.6 percent lower than January last year. according to Eurostat data.

EU COW MILK PRODUCTION CHANGE

                     Jan.-Feb. Jan.-Feb.   Feb.YOY
                     2019/18   2019        2019/18

     COUNTRY         Percent   2019 MT     Percent
     Germany         -1.2      5,263,660   -0.1
     France          -2.7      4,119,970   -2.5
     United Kingdom  +2.4      2,489,100   +3.1
     Netherlands     -3.6      2,253,400   -1.8
     Italy           -4.1      1,987,400   -3.7

Opening 2019 through February, the EU dominates global cheese exports. The EU exported more cheese than the next three countries combined: New Zealand; Belarus; and the United States according to GTA. The U.S ranks forth in cheese exports and follows Belarus which is third.
EU cheese exports January-February 2019, 137,000 MT, increased 7.2 percent from January- February 2018 according to CLAL data provided by agreement to USDA.
The U.S. is the largest buyer of EU cheese, as shown in the table below. CLAL data provided to USDA.

EU CHEESE EXPORTS ą TOP 3 DESTINATIONS

     Percent change January-February 2019/2018

     DESTINATION      MT        PERCENT CHANGE

     United States    19,687     +9
     Japan            18,225    +44
     Switzerland       9,845     +5
EASTERN OVERVIEW:

Milk production in some of the top producing Eastern European countries has been increasing during early 2019, as shown below. CLAL data.

     EASTERN EUROPEAN COW MILK PRODUCTION CHANGE

                     Jan.-Feb. Jan.-Feb.   Feb.YOY
                     2019/18   2019        2019/18

     COUNTRY         Percent   2019 MT     Percent
     Poland          +3.6      1,967,240   +4.0
     Czech Republic   0.0        494,330   +0.3
     Hungary         -0.7        261,360   +0.4
     Estonia         +4.8        123,900   +4.8
     Latvia          -1.0        117,380   +0.3

     Information for the period April 15 - 26, 2019, issued biweekly

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

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