Report 5 – Released on February 4, 2021

WESTERN EUROPEAN OVERVIEW:

While awaiting official 2020 milk production data, Western European sources report thatearly 2021 seasonal increases are believed to be slower than in early 2020. German sourcessay current production has stagnated, using that term to reflect lower YOY milk production.French sources say YOY milk production there is a lower percentage than in Germany. Fewercows is a factor. Lower quality available feed is another factor. In both of these top milkproducing countries though, it is emphasized that because it is so early in the year theyfully expect to pull ahead and end with another year of increased milk production withnearly eleven months to go.

The slow start to 2021 in terms of milk production has slowed cheese production. Most plantsin Germany, for example, have unused capacity. Plant managers would increase productionschedules if they could get more milk. Most extra milk is now going into butter and SMP.This is leading to firmer cheese prices for customers seeking near term delivery.

EASTERN EUROPEAN OVERVIEW:

Milk production in Poland during 2020 increased 2.3 percent from 2019 according to CLALdata made available to USDA. Other manufactured dairy product results include butter, +8.3percent; SMP, +5.3 percent; and WMP, -10.7 percent.

Information for the period January 25 -  February 5, 2021, issued biweekly

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

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