MD_DA100 European Dairy Market Overview Report 7 - Released on February 13, 2020 WESTERN OVERVIEW: In Western Europe, a new mindset is settling in. With more sunlight each day and St. Patrick ’s Day closer ahead than December holidays are behind, increasingly people are looking ahead. Dairy manufacturers say that current milk deliveries continue to seasonally increase. The winter has been relatively mild. In Germany, observers believe milk production is up from both the previous week and from the same week of 2019. French milk production is reported to be up from the previous week. Dairy industry optimism for 2020 is increasing. While January 31 passed with the UK formally leaving the EU, there is still an 11-month transition period during which the UK imports and exports as if it were still a member of the EC Common Market. The window is open to negotiate a new trade relationship before December 31, 2020. There is significant interest among both EU and UK dairy officials in negotiating a trade agreement that will facilitate dairy trade between the EU and UK. There are several factors to be addressed: zero tariffs and quotas; alignment of standards to minimize trade frictions; no technical barriers to trade; maintaining existing geographical indicator protections; protection from third country imports; and maintaining the existing free movement of dairy products between the Republic of Ireland (EU) and Northern Ireland (UK). Demand for sliced cheese is called very firm. There is greater production capacity, but output is straining to keep up with demand. Cheese movements throughout the EU are brisk, as is export demand. Most current production is committed to contract obligations. Keeping spot sales activity low. All in all, buyers and sellers expect cheese prices to remain firm and likely increase into March. EASTERN OVERVIEW: Cheese exports from Belarus January – December 2019 increased 15.4 percent from calendar year 2018, according to Eucolait. Most of the 244,000 Mt exported went to Russia. Whey exports were also strong, up 15.6 percent for the year. There were three top destinations: Russia, 43 percent; China, 29 percent; and Kazakhstan, 9 percent. Information for the period February 3 - 14, 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