MD_DA100

     European Dairy Market Overview

     Report 41 - Released on October 10, 2019

     WESTERN OVERVIEW

     Milk production in Western Europe continues the seasonal decline, now well down from the
     spring peak. Good news is that in two large milk producing countries, Germany and France,
     production last week was believed to be higher than this time last year. During this uneven
     production year, it had been hoped that last quarter production would pull the total for the
     year more above last year than has been the case so far. Thus, hope is nourished by this
     result. The European Commission now projects EU milk production to end 2019 up 0.5 percent
     from last year, according to Eucolait.

     A recent chemical plant fire in the Normandy region of France has resulted in an embargo of
     milk from several hundred farms pending assessment of the impact on water supplies and food
     in the area.

     Cheese demand for European customers and for export remains very good. Aging stocks remain
     lower than ideal because they are used to meet existing contracts. Manufacturers are trying
     to keep good customers within the EU supplied, while also attending to the growing export
     market. It is viewed as important to maintaining Western Europe¶s strong position as an
     exporter to deliver on commitments made. New purchase inquiries typically cannot be
     accepted. Manufacturers are straining to meet existing obligations. This is keeping prices
     firm.

     EASTERN OVERVIEW

     Milk pay prices in Lithuania have been low enough to make it difficult for some small and
     medium sized dairy farms to continue. Drought has made feed less available and more
     expensive. In a number of cases, some of these farms have sold cows to raise cash and reduce
     the need to purchase feed. Many of the cows have been sold to Polish dairy producers. Poland
     has recently recorded very healthy growth in milk production. The Polish herd is growing.

     Information for the period September 30 -  October 11, 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