MD_DA100

     European Dairy Market Overview

     Report 45 - Released on November 7, 2019

     WESTERN OVERVIEW

     The seasonal low point for milk production in much of Western Europe is typically during
     November. German observers expect that to occur in mid November this year. One factor that
     might help mitigate the seasonal decrease is less interest in culling herds. There has been
     a slowing of culling, as demand for Western European milk, and resulting pay prices, have
     incentivized dairy producers. Current pay prices have also led some producers to increase
     feeding, which helps boost per cow production.

     Cheese manufacturers are straining to fill existing orders, especially in Germany. Buyers
     seeking to place new orders are usually turned away. Most aging stocks have been dipped into
     far enough that the limit has now been reached. On the positive side, the continuing strong
     demand and very tight stocks is helping increases prices and profitability.


     EASTERN OVERVIEW

     Milk production in Poland, a leader in Eastern European dairy production, through September
     2019, 9,245,000 MT, increased 2.0 percent from last year, according to CLAL data made
     available to USDA. Nevertheless, for the same period, production of butter was -0.2
     percent, skim milk powder was -3.2 percent, but cheese production was +1.1 percent.

     Information for the period October 28 -  November 8, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric K. 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