MD_DA100

     European Dairy Market Overview

     Report 1 - Released on January 2, 2020

     WESTERN OVERVIEW:

     As 2019 draws to an end, Western European dairy observers comment that annual milk
     production does not seem on track to increase as much as had been projected a year ago. The
     official data through October suggests that when data through December is released, there
     will be a smaller annual increase than had been expected. Disappointing January – June milk
     production this year made it more difficult for better later year results to pull the entire
     year much ahead of last year. The overall expectation among Western European dairy officials
     for 2020 is a slight increase in milk production over 2019.

     Of course, there was variation among the countries of Western Europe. France and Germany,
     traditionally the largest milk producers, had disappointing results so far. A factor leading
     to lower than expected milk production was feed. Early 2019 feed quality and quantity, had
     been adversely affected by previous summer weather. On the positive side, ZMB reports that
     the EU wide average fat content in milk for 2019 through October is slightly higher than the
     same months of 2018. An increase in milk protein for 2019 over 2018 was also noted.

     EASTERN OVERVIEW:

     Ukraine is expanding export markets for condensed milk. Currently focused on Baltic
     countries, interest from Portugal, Spain and parts of Scandinavia is leading to additional
     demand.

     Information for the period December 23, 2019 -  January 3, 2020, 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