Report 9 – Released on March 4, 2021

WESTERN EUROPEAN OVERVIEW:

Western European milk production in the primary milk producing countries benefitted fromgood spring weather, which helped keep seasonal production increasing. Western Europeandairy manufacturers, especially for cheese, butter and SMP, keep a keen eye on milkproduction. Those categories would all be interested in higher milk intakes. Seasonalincreases help. Sources say that YOY increases would be most welcome as well.

EU annual 2020 production of milk delivered to dairies increased 1.6 percent from 2019production of milk delivered to dairies according to CLAL data made available to USDA. Amongsome of the top producers, the percentage changes during 2020 compared with 2019 are Germany, +0.3 percent; France, +0.5 percent; Netherlands, +1.1 percent; Italy +4.4 percent;and Ireland +3.8 percent.

Calendar year 2020 milk exports from the EU, 1,044,311 MT, increased 8.3 percent fromcalendar year 2019 according to Eucolait. Top 2020 export destinations, quantity exported,and percent of calendar year 2020 exports include China, 464,225 MT, 49 percent; UnitedKingdom, 80,498 MT, 8.5 percent; and Libya, 44,223 MT, 4.7 percent.

Milk Export Volumes and Percent Change 2019/2020
     Country            Volume MT        Percent Change

     EU                    1,044,311        +8.3
     Australia              237,249        +7.7
     New Zealand        231,673         -8.1

Many cheese plants are not operating at capacity. Semi hard cheese stocks remain low becausefilling current demand has edged out some aging stock building. Most extra milk is currentlygoing into cheese. The EU is the leading global exporter of cheese. There are widespreadexport commitments to satisfy as well as internal EU demand.

EU annual 2020 cheese production increased 1.5 percent from 2019 annual cheese productionaccording to CLAL data made available to USDA. Among some of the top cheese producers, thepercentage changes during 2020 compared with 2019 are Germany, +2.5 percent; France, -1.8percent; Netherlands, +2.4 percent; Italy +1.2 percent; and Ireland +3.2 percent.

Calendar year 2020 cheese exports from the EU, 1,355,060 MT, increased 0.5 percent fromcalendar year 2019 according to Eucolait. Top 2020 export destinations, quantity exported,and percent of calendar year 2020 exports include United Kingdom, 403,066 MT, 34.9 percent;Japan, 108,331 MT, 9.4 percent; and United States, 96,529 MT, 8.4 percent.

Cheese Export Volumes and Percent Change 2019/2020
     Country            Volume MT         Percent Change

     EU                    1,355,060         +0.5
     USA                    358,538           -0.7
     New Zealand       326,903           -2.4
     Australia             154,215           -3.6

EASTERN EUROPEAN OVERVIEW:

Comparing calendar year 2020 with calendar year 2019, production of dairy products inPoland was milk deliveries, +2.3 percent; butter, +8.3 percent; cheese, +3.4 percent; WMP,-10.7 percent; and SMP, +5.3 percent.