MD_DA100 European Dairy Market Overview Report 11 - Released on March 18, 2021 WESTERN EUROPEAN OVERVIEW: In the primary milk producing countries, Germany, France, and Netherlands, milk production for the last several months has struggled to equal or exceed monthly YOY production. Dairy experts in Western Europe say a continuing challenge is fewer cows, resulting from older dairy producers retiring, with no family members taking over farming. The sources estimate that each year for several years, 4-5 percent of milk production has “retired” permanently in this way. Governments have not advanced plans to address this factor. The government attitude in Germany was described as no angst over the situation. This retirement factor is less a factor in Western Europe outside Germany, France, and Netherlands. Some other countries have good YOY milk production increases. Considering this factor in the big three countries, increases in milk production must come from greater per cow production, and/or existing farmers expanding herds. At this time in March, observers say that dairy producers could boost output but are holding back because of higher feed costs. That, coupled with current milk pay prices, have constrained production increases. There is hope that in coming months as pasturing becomes more of an option, that milk production will yield positive YOY results for Western Europe as an entity. EASTERN EUROPEAN OVERVIEW: Eastern European milk production expansion has slowed. Poland has typically led Eastern European milk production increases. Indeed, it has recently also led many countries in Western Europe. Poland is now generating lower production increases. Other Eastern European states are below year ago production trends. Lower milk pay prices and squeezed margins are cited. January 2021 milk production in Poland increased 0.5 percent according to CLAL data made available to USDA. Milk production in the Czech Republic during January 2021 decreased 3.7 percent YOY. Information for the period March 8 - 19, 2021, 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