MD_DA100 European Dairy Market Overview Report 11 - Released on March 16, 2023 WESTERN EUROPEAN OVERVIEW: Seasonal milk production continues to grow across much of western Europe. While adverse weather periodically inhibits weekly milk collection growth, the general trend has been toward higher milk outputs in much of northern Europe to start the year. However, in parts of France and southern Europe, drier conditions have prevented a strong start to the milk production year. According to CLAL data made available to USDA, the provisional January 2023 cows' milk delivered to dairies in the UK was 1,295,000 MT, up 1.9 percent from January 2022. Total year milk deliveries in the UK for 2022, 15,364,700 MT, was 0.5 percent less than total milk deliveries in 2021. Industry contacts project 2023 milk volumes in the EU may be like last year. However, concerns about falling commodity prices, weak demand, and regulations may keep milk production capped. Farmers in Belgium and the Netherlands drove tractors to their nations' capitals in protest over proposed nitrogen emission regulations. The new rules would curtail the efficacy of animal agriculture in parts of the two countries. The protests come a few days before the Belgian-Flemish regional government wants to decide on the proposed rules and the regional elections in the Netherlands that would shape the next Dutch Senate. A European dairy trade association released its report on 2022 dairy trade. The report suggests global dairy exports finished the year, 2.2 percent lower than 2021, the first decline in global trade in the last two decades. EU exports decreased in almost all dairy categories, with milk powders declining the most. The report suggests less milk availability and lower competitiveness on the world markets were driving forces with the lower export numbers. EU dairy exports to China, Indonesia, Malaysia, Philippines and Thailand decreased between 17 and 22 percent last year. EASTERN EUROPEAN OVERVIEW: Milk production in 2022 exhibited strong growth in such eastern European countries as Poland and the Czech Republic. Seasonally, milk deliveries are growing in eastern Europe. And while milk output growth is anticipated in parts of the region, the war between Ukraine and Russia will weigh heavily on other parts of the region. Ukrainian officials note increased prices for feed and energy; the destruction of key components of the country's energy infrastructure; and lower prices and greater market uncertainties for dairy products as significant challenges. Exports were critical to maintaining the Ukrainian dairy industry. However, with falling commodity prices, the attractiveness and value of dairy exports are decreased. The deal to keep Black Sea ports open to grain shipments is set to end March 18th, unless Ukraine and Russia agree to an extension. Ukraine feels the deal should be extended indefinitely, with additional ports added to the agreement. However, Russian officials are concerned that Russian farm interests have not been considered. Russia would like to see requirements placed on its payments, logistics and insurance industries relaxed to better facilitate the export of Russian grain and fertilizers. A UN official stated both Russian and Ukrainian food and fertilizer exports are essential to global food security and food prices. Information for the period March 6 - 17, 2023, 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