MD_DA100

     European Dairy Market Overview

     Report 31 - Released on August 1, 2019

     WESTERN OVERVIEW

     The second heat wave of summer 2019 roasted many parts of Western Europe last week. For
     example, Paris set an all time high temperature near 110 degrees Fahrenheit. Many other
     parts of France either set heat records, or were near previous records. It was extremely hot
     in Germany, Netherlands, and Belgium. Temperatures this week have returned closer to normal.
     Expectations are that the heat may result in a brief set back for milk production, but there
     will be a quick rebound. That was the pattern following the first heat wave. Thus, there is
     not much concern with longer term implications for the dairy industry this season.

     New trade talks between the EU and the U.S. began about one year ago, in July 2018. The EU
     excluded agriculture from the talks although the U.S. remains interested in agricultural
     issues. A progress report was issued by the EU this week. No results leading closer to
     including agriculture have been agreed to so far.

     Through May, EU exports of cheese, butter, and skim milk powder, are up from year ago
     volumes. Even with a slow start to 2019 milk production, there is relief that there has been
     enough more milk available to increase production and exports of these dairy products.

     EU cheese exports January - May 2019, 355,093 MT, was up 2.0 percent from the same period of
     2018, according to Eurostat.

     EASTERN OVERVIEW

     Belarus has reported increases in dairy exports January ± May 2019 compared with January ±
     May 2018, according to CLAL data provided to USDA. Positive results were reported for
     butter, 34,000 MT, +6.6 perecent; cheese, 97,000 MT, +21.8 percent; and SMP, 47,000 MT,
     +30.3 percent.

     Information for the period July 22 -  August 2, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric 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