Report 45 – Released on November 7, 2019

WESTERN OVERVIEW

The seasonal low point for milk production in much of Western Europe is typically during November. German observers expect that to occur in mid November this year. One factor that might help mitigate the seasonal decrease is less interest in culling herds. There has been a slowing of culling, as demand for Western European milk, and resulting pay prices, have incentivized dairy producers. Current pay prices have also led some producers to increase feeding, which helps boost per cow production.

Cheese manufacturers are straining to fill existing orders, especially in Germany. Buyers seeking to place new orders are usually turned away. Most aging stocks have been dipped into far enough that the limit has now been reached. On the positive side, the continuing strong demand and very tight stocks is helping increases prices and profitability.

ASTERN OVERVIEW

Milk production in Poland, a leader in Eastern European dairy production, through September 2019, 9,245,000 MT, increased 2.0 percent from last year, according to CLAL data made available to USDA. Nevertheless, for the same period, production of butter was -0.2 percent, skim milk powder was -3.2 percent, but cheese production was +1.1 percent.

Information for the period October 28 -  November 8, 2019, issued biweekly

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

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