Report 21 – Released on May 27, 2021

WESTERN EUROPEAN OVERVIEW:

EU milk production January – March 2021, 35.605 million MT, decreased 0.3 percent fromJanuary – March 2020 according to Eurostat data reported by Eucolait. March 2021 productionincreased 0.6 percent.

Milk production in Germany, France, Netherlands, Italy, and other top producing countriesremains near the seasonal peak. While the overall seasonal trend will be lower, countertrending weekly variations have been noted. Recently in Germany milk post peak productionwas estimated by ZMB to have increased 0.9 percent from one week to the next. In France theweekly increase was estimated to be 3.3 percent. These trend aberrations occur from time totime, but the overall trend will be lower. Current consumer demand for fluid milk is lowerthan expected. That releases more milk into dairy manufacturing.

For the top European countries reporting cheese production through Q1, 2021 so far, thepercentage change for January – March 2021 compared with January – March 2020, and March2021 compared with March 2020, according to Eurostat data reported by Eucolait, are Germany,+1.2 percent, +4.4 percent; France, -0.1 percent, +3.3 percent; Italy, +9.6 percent, +6.3percent; Poland, +3.8 percent, +10.4 percent; and Netherlands, +5.8 percent, -0.4 percent.

EU exports of cheese during March 2021, 124,770 MT, increased 11 percent from March 2020according to Eurostat. January – March 2021 cheese exports, 318,829 MT, decreased 3 percentfrom January – March 2020. The top three cheese export destinations January – March 2021,amount, and percent change from January – March 2020 according to CLAL data made availableto USDA are Japan, 28,343 MT, +13.81 percent; United States, 27,673 MT, -13.86 percent; andSwitzerland, 18,853 MT, +15.69 percent.

Ongoing discussions between the United Kingdom and Australia concerning a potential freetrade agreement are ongoing. The agricultural trade component remains uncertain. Variousministers of the current UK government have openly disagreed as to whether to remove tariffson Australian dairy imports by the UK, as a predicate to opening the way for exports intoAustralia tariff free. The UK Trade Secretary recently advocated abolishing agriculturaltariffs. Some other ministers have opposed this, but recently Prime Minister Boris Johnsonsupported his Trade Secretary. Parliament has yet to decide the matter. New Zealand is inline for similar discussions with the UK.

EASTERN EUROPEAN OVERVIEW:

Polish milk production in April 2021 increased 1.4 percent from April 2020 according toZBT. January – April 2021 production changes from January – April 2020 include milk, +0.9percent; cheese, +2.9 percent; and butter, +0.2 percent.

Observers of the Eastern European dairy situation have noticed that Belarus regularlyregisters as number 4 globally in cheese exports behind the U.S., EU, and New Zealand. TheBelarus Food Minister recently stated that dairy products typically constitute about 40percent of Belarusian food exports. Achieving growth in dairy output for Belarus in partresults from a government effort to encourage children to go into agricultural production.To that end it has been reported that Belarus sent ten youth teams to Moscow to participatein a competitive event called Beginner Farmer, competing among 34 youth teams from Russia. Armenia, Azerbaijan, Belarus, Germany, Kazakhstan, and Kyrgyzstan. A government officialworking with the Belarus youth teams has reported that seven of the ten teams from Belaruswon Beginning Farmer awards in their categories.

 Information for the period May 17 - 28, 2021, issued biweekly

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

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