Report 17 – Released on April 23, 2020

WESTERN OVERVIEW:

January – February 2020 milk production in the EU increased 3.2 percent YTD compared with January – February 2019 according to Eurostat. February 2020 production increased 4.9 percent from February 2019. German production increased 2.7 percent; France increased 3.1 percent; Italy increased 2.6 percent; and Netherlands increased 4.0 percent.Cheese production in the EU increased 2.6 percent January – February 2020 compared with January – February 2019 according to Eurostat. February 2020 cheese production increased 3.6 percent YOY. Among some top producers, January – February 2020 compared with January –February 2019, Germany was +5.5 percent; France was +2.5 percent; and Italy was 0.6 percent.

January 2020 cheese exports from the EU,80,766 MT, increased 18.9 percent YOY. Top destinations, quantity and percentage of the total, include the United States, 14,322 MT,17.7 percent; Japan, 8,546 MT, 10.6 percent; and South Korea, 5,841 MT, 7.2 percent.

Weakening dairy prices in the wake of COVID-19 impacts in Western European dairy markets may contribute to opening Private Storage Aid (PSA). According to Eucolait, all EU agriculture ministers recently called for activation of private storage aid for cheese. This week the EUCouncil of Commissioners began the process to activate PSA for cheese. Formal adoption is expected by the end of April. A maximum of 100,000 MT of cheese is expected to be eligible.The expected storage period is 60 – 210 days. There is some conflicting information as to the maximum storage time, with other sources reported to cite six months.

There is also a proposal, not yet approved by the European Commission, concerning EU competition rules. The proposal is to allow agreements or decisions among producers and producer organizations to reduce milk production during a six-month period. France has already implemented a milk reduction program for April, according to Eucolait. European Commission approval remains pending.

ASTERN OVERVIEW:

In Eastern Europe, January – February 2020 milk production compared with January – February 2019 increased 2.1 percent in Poland, the largest milk producing country, and 4.1 percent in Hungary. For Poland, January – February 2020 production YTD showed changes compared with last year: butter, -0.6 percent; cheese, +5.8 percent; SMP, -6.4 percent; and WMP, -7.5 percent.

     Information for the period April 13 - 24, 2020, issued biweekly

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

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