MD_DA104 Butter/Butteroil - Europe Report 31 - Released on July 30, 2020 Butter prices are higher. Butteroil prices are mixed. Demand for packaged butter has increased in many larger Western European countries. Butter manufacturers in Germany report that retail packaged butter sales are quite strong for this time of year, reflecting that more people are staying home for summer vacation. Block butter contracts are being filled for the internal market but new contracting for later this year is slow. Buyers are more inclined to close deals for lower price range bulk butter when available. Manufacturers are challenged to close new deals for higher priced bulk butter. Price expectations are cited as a sticking point. Export demand has slowed. A number of plants with contracted cream supplies are perfectly happy to sell unneeded cream as that brings a good return currently. Western Europe, 82% Butterfat, Free on Board - Port Butter Price Range - $/MT: 3,825 - 4,050 Western Europe, 99% Butterfat, Free on Board - Port Butteroil Price Range - $/MT: 4,650 - 4,975 Information for the period July 20 - 31, 2020, issued biweekly Secondary Sourced Information: EU butter production during May 2020 was 1.6 percent lower than May 2019, according to Eurostat. January – May 2020 butter production was reported as 1.3 percent higher than January – May 2019. Looking at some of the primary Western European butter producing countries January – May 2020 compared with January – May 2019, the percentage changes are Germany, +2.4 percent; France, +0.7 percent; Netherlands, -4.7 percent; Italy, +0.6 percent; and United Kingdom, -1.0 percent, according to CLAL data provided to USDA. EU butter exports January – May 2020, 122,858 MT, increased 38.7 percent from January – May 2019, according to Eucolait. The main export destinations for the first third of 2020, quantity, and percent of the total, were the UK, 19,716 MT, 20.3 percent; The United States, 12,987 MT, 13.4 percent; and Saudi Arabia, 7,912 MT, 8.1 percent. EU butteroil exports January – May 2020, 19,964 MT, increased 26.3 percent from January – May 2019, according to Eucolait. The main export destinations for the first third of 2020, quantity, and percent of the total, were the UK, 4,774 MT, 28.6 percent; Philippines, 2,292 MT, 13.7 percent; and Saudi Arabia, 1,985 MT, 11.9 percent. 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