Report 19 – Released on May 13, 2021

WESTERN EUROPEAN OVERVIEW:

Frustration remains in the heart of Western European milk production areas. The unusuallycold spring has adversely affected pasture growth and the availability of fresh feed forcows. That has led to a lingering slow start to 2021 milk production. Seasonal milkproduction increases have been noted. But the YOY increases have not been as much asprojected when 2021 began. Weather is the problem. With the projected deficiency often inthe range of 1 percent or less, there is time to rebound. Until then, anxiety persists.

Positive news is that sources point out that milk component percentages for protein and fatare higher in early 2021 than 2020.

Complicating matters for dairy manufacturing, COVID continues to keep more people at home inGermany. At this point vaccines are only open to people age 60 or above, except for someoccupational priorities. Many people do not expect that traditional travel focused summerholidays will be possible this year in Germany and France.

One outcome of more people at home is said to be increased demand for fluid milk. Yet whencoupled with disappointing YOY milk production increases, milk available for dairymanufacturing is further reduced by this increased consumer demand.

When asked which manufactured dairy products have priority for available milk, most WesternEuropean sources say it is cheese. Butter and milk powders typically trail cheese on thepecking order scale, barring specific plant locational exigencies related to milk supplies.

The UK is faring better in terms of 2021 milk production than some of the countries acrossthe channel. Sources believe when next released, official data will show UK seasonal milkproduction through April higher than 2020 through April. Some estimates place the increaseat about 1.3 percent.

Demand for cheese in Western Europe is increasing. Sources say that the Thursday, May 13holiday will become a very long weekend for many people in Germany and France. This hasshifted the logistic focus toward stocking retail food stores earlier. Extra EU exportdemand is steady.

EASTERN EUROPEAN OVERVIEW:

Poland is generally the largest Eastern European milk producing nation. It also producesmore milk than a number of Western European nations. With March 2021 official data nowreleased, Poland’s January – March 2020 milk production declined 0.4 percent from January –March 2020 according to CLAL data made available to USDA. However, March 2021 milkproduction increased 1.7 percent from March 2020. There is hope in Poland that the positivepercentage will continue in coming months.

Cheese production has been a bright spot for Poland. January – March 2021 cheese productionincreased 2.6 percent from January – March 2020. Cheese was the only primary manufactureddairy product reflecting YOY 2020 growth so far. March 2021 cheese production increased10.4 percent from March 2020.