Report 23 – Released on June 6, 2019

WESTERN OVERVIEW

Western Europe overall continues to generate less milk production than many dairy processors would like. Weekly milk production in some of the main Western European milk producing countries in late May continued to not quite hit year earlier output. ZMB quick news coverage for Germany reports milk production through late May was 1.9 percent lower than the same period of 2018. Milk production in France late May was 1.0 perecent below production one year ago. Many observers believe the seasonal peak has now passed in Germany and France. This is slightly earlier than typical.

More detail is now available about official EU milk production January ± March 2019. Among the top two Western European milk producing nations, Germany and France, 2019 YTD production through March did not show positive outcomes. Germany was about even with last year January-March. A bright spot for Germany was that March 2019 YOY was up 1.2 percent. In France, January-March 2019 was -2.1 percent YTD compared with 2018. March 2019 was -0.8 percent YOY.

Better results were delivered in other countries. Milk production was up January-March YTD and March YOY in Belgium, Denmark, Ireland, Luxemburg, and the UK.

EU cheese production January-March 2019 was 0.3 percent lower than the same period of 2018, according to Eurostat. This continues to result in aging stocks being drawn down. Early June stocks are said to be at a lower than desirable level. The primacy of continuing to meet export demand to keep good relationships with contracting parties leads to drawing down aging stocks. Cheese exporters also continue to seek new export opportunities, believing that cheese production volumes will be able to be increased later in 2019 as expected milk production rises above 2018 levels.

EASTERN OVERVIEW

Poland ranks sixth in European milk production so far in 2019 and is the top producing Eastern European country. Production through March 2019 increased 3.6 percent, as did March YOY production, according to Eucolait. A number of other Eastern European countries also contrast with principal Western European milk producing countries in having increases over 2018 both January-March YTD, as well as March YOY. These include the Czech Republic, Estonia, Cyprus, Lithuania, Hungary, Malta, and Romania.

nformation for the period May 27 -  June 7, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

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