MD_DA100 European Dairy Market Overview Report 41 - Released on October 8, 2020 WESTERN EUROPEAN OVERVIEW: Autumn weather in Western Europe has been favorable to milk production. Most of the primary producing countries have reported year on year increases in recent weeks. While an annual increase is expected for 2020, some dairy experts in Western Europe caution that the pace of recent YOY increases folded into full 2020 data may effectively slow in the final three months of 2020 because in 2019, it was the final quarter where growth really broke through and lifted the annual data. There is also concern about future global dairy pricing if milk production increases in Western Europe are added to expected increases in the United States and Oceania. Milk production is seasonally declining. Germany is heading toward the expected seasonal low in November. A similar pattern is noted in France. Last week many dairy processors met under the auspices of the European Commission to review the status of the European dairy industry. It is reported by some attendees that sentiment was more positive than at the last meeting in June. There was general consensus that the dairy market has been resilient. Strong exports, retail sales, partial recovery of food service demand, and government stimuli are cited as factors. Nevertheless, there was uncertainty expressed as to the future, due to possible impacts of economic factors on consumer purchasing, as well as COVID-19 factors limiting dining out. Cheese manufacturers are maintaining busy schedules to keep up with demand. Orders from within the EU have increased. Not all buyers can receive delivery as soon as they would like. Export interest is very strong even if a bit weaker than several months ago. The cheese business in Western Europe is doing very well. Increased milk production this year has helped keep milk flowing into cheese plants. EASTERN OVERVIEW: In Poland January – August 2020 milk production was reported as 4.7 percent higher than January – August 2019 according to CLAL data provided to USDA. Production of some dairy commodities in Poland January – August 2020 compared with January – August 2019, are cheese, +4.0 percent; butter, +8.9 percent; and SMP, +5.8 percent. Information for the period September 28 - October 9, 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