Report 3 – Released on January 21, 2021

WESTERN EUROPEAN OVERVIEW:

Western Europe sources report that 2021 began with milk production lower than one yearearlier. In Germany the seasonal increase slowed, with estimates that first week Januarymilk production dipped slightly lower than the prior week.

EU milk production January – November 2020 increased 1.7 percent from January – November2019 according to CLAL data made available to USDA. Among some of the top milk producers,the percentage changes January – November 2020 compared with January – November 2019 areGermany, +0.5 percent; France, +0.6 percent; and Netherlands, +1.3 percent.

Cheese demand in Western Europe is stronger than most manufacturers had expected. Especiallyhigh retail demand for cheese is noted, fueled by store promotions of cheese. Equallysurprising is that food service demand is higher than had been expected, notwithstandingCOVID-19. Strong contracting will keep cheese production active and stocks low. Cheesemanufacturers would take on extra milk as it was available, but they are mostly relegated tocontracted volumes.

EU cheese production January – November 2020 increased 1.6 percent from January – November2019 according to CLAL data made available to USDA. Among some of the top cheese producers,the percentage changes January – November 2020 compared with January – November 2019 areGermany, +2.4 percent; France, -1.9 percent; and Netherlands, +2.8 percent.

EU cheese exports January – November 2020, 862,000 MT, increased 6.6 percent from January –November 2019 according to CLAL data made available to USDA. The United States is the secondlargest importer of EU cheese during this period.

EASTERN EUROPEAN OVERVIEW:

Polish milk production January – November 2020 increased 2.4 percent from January –November 2019 according to CLAL data made available to USDA. Among other dairy products,Polish percentage changes January – November 2020 compared with January – November 2019 arebutter, 8.0 percent; SMP, 5.7 percent; WMP, -11.9 percent; and cheese, +3.4 percent.