MD_DA100 European Dairy Market Overview Report 39 - Released on September 29, 2022 WESTERN EUROPEAN OVERVIEW: Although European milk outputs are declining along seasonal trends, a few areas have had weekly milk deliveries above the previous year. As recently as week 37, German milk deliveries were 1.2 percent higher, and milk deliveries in France were 0.7 percent higher than that same week in 2021. Some industry contacts suggest higher milk prices may have prompted farmers to push their cows to produce a little more milk. Relief from the intense summer heat and rains that renewed autumn pastures probably did not hurt either. The summer heat and drought conditions took a toll on European crops. Lack of rainfall prevented crops from developing in many parts of Europe. For example, in France, rainfall averaged less than 1 cm for the month of July. As a result, corn growers think the harvest may be 35 percent lower than average. Officials expect EU corn and grain production to be at 15-year lows, eliciting the need to import grains from other regions. However, it is still unclear whether Ukraine will be able to effectively export the grain needed for Europe or other parts of the world. It is very likely that the short supplies of grains may hold food and feed prices high through the remainder of the year, keeping dairy farmer financials under pressure. United Kingdom exports are starting to return to pre-Brexit levels. According to CLAL data made available to USDA, cheese exports from the United Kingdom January - July 2022, 103,000 MT, increased 25.0 percent from January - July 2021. Main destinations January - July 2022, quantity, and percent change from January - July 2021 are Ireland, 23,941 MT, +28.40 percent; France, 16.554 MT, +126 percent; and Belgium, 13.274 MT, -1.51 percent. EASTERN EUROPEAN OVERVIEW: Declining seasonal milk output trends aside, some Eastern European countries have expanded year over year milk production through the first eight months of the year. Poland, for example, has held milk growth at or above 2021 levels in every month of 2022. According to industry sources, preliminary data for August 2022 reveals milk deliveries in Poland are 1.6 percent above August 2021. Ukraine has begun the corn harvest for 2022. According to the agricultural ministry in Ukraine, the country could harvest about 26 million tons of corn this year. The amount is 60 to 65 percent of the corn harvest of 2021. Loss of land to Russian forces and reduced yields have cut into Ukrainian production of corn, wheat, and barley. Year to date Ukrainian grain exports are down 41.5 percent for the 2022/2023 season, but industry sources are hopeful that the UN-brokered grain export deal can help increase the flow of shipments made through the Black Sea. Information for the period September 19 - 30, 2022, issued biweekly Published by: Dairy Market News - Madison, WI MIKE BANDLI, 608-422-8592 Email: mike.bandli@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