Report 45 – Released on November 5, 2020

WESTERN EUROPEAN OVERVIEW:

An experienced European dairy analyst characterizes current dairy markets there as being super boring. Most price movements are viewed as sideways market movements with little trendsetting significance. Milk production in the EU January – August 2020 increased 1.8 percent from January – August 2019 according to CLAL data made available to USDA. November milk production in the main producing countries, Germany and France, is at the seasonal low point. Ireland has had strong increases during 2020 but unofficial reports for September note a slowdown, partly seasonal. The relatively recent increase in demand for UHT milk continues. Sales are called very high. This has kept some fluid milk away from the normal manufactured dairy products to accommodate UHT sales. Some French manufactured dairy products are reported to be the subject of being banned by several supermarket chains in Qatar.

Cheese production in the EU January – August 2020 increased 1.8 percent from January –August 2019 according to CLAL data made available to USDA. Cheese demand is shifting with recent restriction of restaurant activity. Lower interest from food service is in contrastto more interest from retail stores. Cheese manufacturers and distributes are now more experienced in shifting demand from earlier COVID-19 restrictions. A result has been a smoother transition following recent tightening of various activities.

Eastern Europe:

Ukraine exports of primary dairy products January – August 2020 were below January – August 2019. Results include butter, -46.1 percent; SMP, -30.9 percent; WMP, -61.1 percent; and cheese, -18.1 percent, according to CLAL data made available to USDA.