Report 15 – Released on April 9, 2020

WESTERN OVERVIEW:

Western European seasonal milk production is moving forward toward the expected peak next month. Dairy sources say that in some of the largest producing states, Germany, France,Italy and Netherlands, production increases have been pleasing to producers. Germany and France each had a hiccup where weekly production was lower than the previous week. Even so,official data through January and anecdotal observations into early April indicate that YTD production leads last year.

Stay at home orders of varied types continue to be in force in most of Western Europe. Time does slop by. A source in Belgium commented that it is already week four of stay at home restrictions there. That is expected to continue at least through April. In most countries this has led to a dairy supply/demand disruption, exacerbated by the severe reduction in food service business activity.Last week the European Commission released details of a new plan to help agricultural producers make it through the current period of uncertainty. Farmers (including dairy producers) are eligible to receive loans of up to 200,000 euros which need not only be used for on farm investments. The loan proceeds may be also used to help cash flow. Dairy organizations in Western Europe continue to press for additional assistance, such as private storage aid. So far, the commission has not been viewed as being very receptive to the idea.

Budgetary factors are one of the obstacles. Nevertheless, farm groups expect to continue to press for additional assistance.

Cheese markets in Western Europe reflect significantly reduced demand from restaurants,catering and other food service channels. Home consumption is higher. A new dimension being noted is increasing calls from Asia for cheese exports. This seems to be a resumption of interest. Costs for containers and logistics are higher, but the increasing export demand is welcome.

EASTERN OVERVIEW:

Ukrainian government efforts to curb the spread of COVID-19 led to more milk flowing into dairy manufacturing. Restrictions on sales of food in markets and bazaars disrupted normal sales of farm milk in those settings. Culturally, many consumers have regularly purchased fluid milk in these non-supermarket settings. The new restrictions led to the milk being sent to manufacturing plants. The result is increased output of milk powders, butter and casein.

     Information for the period March 30 -  April 10, 2020, issued biweekly

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

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