MD_DA100

     European Dairy Market Overview

     Report 37 - Released on September 12, 2019

     WESTERN OVERVIEW

     German milk production through much of August was above the previous August, according to
     ZMB early reporting. However, by the end of August, another hot spell led to lower
     production and likely lower production for the month once official data is released. Milk
     production in the first week of September is reported to have returned to expectated levels.


     Even with the periods of extreme heat in recent months that impacted production in Germany,
     France, and some other countries, a factor helping EU production is farmgate milk prices. EU
     wide farmgate milk pay prices January ± August this year are 2.2 percent higher than last
     year, according to CLAL data provided to USDA. Many Western European observers are
     optimistic that stronger pay prices will encourage farmer efforts to increase production
     through the rest of the year, especially when the threat of extreme heat is no longer a
     factor.

     In the scheduled European Commission roll over, the new President, has nominated as
     Agriculture Commissioner, a member of the ruling party in Poland. The nominee is said to be
     an advocate for increased farm supports and payments. He has also previously opposed large
     scale farming in favor of a ³family farm´ model. Confirmation hearings are scheduled in the
     European Parliament at the end of September.

     Western European cheese production remains below levels previously planned. German cheese
     manufacturers attribute this to lower than expected milk production earlier in 2019, as
     well as competing demand from other dairy product manufacturing, for more recent milk
     production. Demand remains good from both the retail sector, as well as industrial cheese
     customers. Exports are considered normal. Aging stocks are low and still decreasing. This is
     a matter of concern as the trend must reverse at some point.

     EASTERN OVERVIEW

     Poland¶s milk production January ± July this year was 2.1 percent higher than last year,
     according th CLAL data made available to USDA. Cheese production was 0.7 percent higher.

     The Czech Republic reports January ± July milk production 0.8 percent higher than last year.
     Butter production was 11.2 percent higher.

     Information for the period September 2 - 13, 2019, 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