Report 25 – Released on June 24, 2021

WESTERN EUROPEAN OVERVIEW:

A heat wave in Germany, France, and Netherlands last week likely caused a dip in milk production. Weather is back to seasonally normal, so no lingering impact is expected. Milk production is seasonally trending lower. Most dairy commodity markets are quiet. Sources say that there is ample storage capacity for manufactured dairy products. Storage volumes are low, but at adequate levels for coming needs.

Sources in Western Europe are pleased with the stronger current milk production than a few month ago. German, French, and Dutch sources also note that official April YOY milk production was improved over YOY. Irish sources say that good milk prices have continued to drive efforts to increase milk production in Ireland. Unofficial data for May shows continuing strong production increases. If you are interested in specific data, please scroll down to the secondary sourced information. German and French sources observe that current production is believed to lead production last year.

China has been a big buyer of EU fluid milk exports during 2021. Sources comment that this export market is quite dynamic and also increasing. The secondary sourced data section provided detail about this welcome trend.

As many sources had expected, after leaving the European Union Great Britain has sent most of its fluid milk exports to the EU. The same is true for cheese exports.

Cheese remains an important focus in Western Europe. German, French, Dutch and Italian sources have commented that most all extra milk goes into cheese. That has increased 2021 production over 2021. However, the increasing internal EU cheese demand has restricted export growth. The data below in the secondary sourced section supports what sources have informally relayed.

EASTERN EUROPEAN OVERVIEW:

Western European dairy sources attribute cheese production in Poland as helping to meet EU export obligations. It is noted that more Western European EU members trail Poland in dairy production, than lead it. The official data follows in the next section.

     Information for the period June 14 - 25, 2021, issued biweekly

Secondary Sourced Information:

EU milk production January – April 2021, 48,500,230 MT, increased 0.1 percent from January – April 2021 according to Eurostat data reported by Eucolait. April 2021 milk production increased 1.0 percent from April 2020. Among some of the leading Western European milk producing countries the milk production percentage change for January – April 2021 compared with January – April 2020, and the April 2021 YOY percentage change are Germany, -1.4 percent, -0.7 percent; France, -1.6 percent, +0.7 percent; Italy, +2.6 percent, +2.6 percent; Netherlands -1.2 percent, -0.8 percent; Ireland +9.2 percent, +6.1 percent. Irish sources say that good milk prices have continued to drive efforts to increase milk production in Ireland. Unofficial data for May shows continuing strong production increases.

Milk exports from the EU27 January – April 2021, 417,099 MT, increased 3 percent from January – April 2020 according to Trade Data Monitor and Eucolait. Main destinations January – April 2021, quantity, and percent of the total are China, 227,803 MT, 54.6 percent; Libya, 27,009 MT, 6.5 percent; and United Kingdom, 16,804 MT, 4 percent.

Milk exports from the United Kingdom January – April 2021, 289,554 MT, increased 2.2 percent from January – April 2020 according to Trade Data Monitor and Eucolait. Main destinations January – April 2021, quantity, and percent of the total are the EU27, 288,270 MT, 99.6 percent; Hong Kong, 498 MT, 0.2 percent; and Gibraltar, 160 MT, 0.1 percent.

EU cheese production January – April 2021, 3,104,790 MT, increased 3.8 percent from January – April 2021 according to Eurostat data reported by Eucolait. April 2021 cheese production increased 4.8 percent from April 2020. Among some of the leading Western European cheese producing countries the cheese production percentage change for January – April 2021 compared with January – April 2020, and the April 2021 YOY percentage change are Germany, +2.5 percent, +6.0 percent; France, +2.1 percent, +6.0 percent; Italy, +7.1 percent, +0.2 percent; and Netherlands +5.5 percent, +4.4 percent.

Cheese exports from the EU27 January – April 2021, 412,877 MT, decreased 4.7 percent from January – April 2020 according to Trade Data Monitor and Eucolait. Main destinations January – April 2021, quantity, and percent of the total are United Kingdom, 98,072 MT, 23.8 percent; Japan, 38,096 MT, 9.2 percent; and United States, 36,190 MT, 8.8 percent.

Cheese exports from the United Kingdom January – April 2021, 45,768 MT, decreased 25.7 percent from January – April 2020 according to Trade Data Monitor and Eucolait. Main destinations January – April 2021, quantity, and percent of the total are the EU27, 33,622 MT, 73.5 percent; United States, 2,727 MT, 6 percent; and Saudi Arabia, 1,003 MT, 2.2 percent.

Poland is often the largest Eastern European dairy producer, sometimes topping some Western European countries. January – April production volumes, percentage change from January – April 2020, and April 2021 YOY percentage changes according to Eurostat data reported by Eucolait are WMP, 11,250 MT, -2.7 percent, -5.9 percent; SMP, 53,570 MT, -6.8 percent, -13.9 percent; cheese, 317,140 MT, +4.6 percent, +7.5 percent; butter, 83,140 MT, -1.5 percent, -4.4 percent; cow’s milk, 4,181,920 MT; +1.0 percent, +1.9 percent.

Published by:

Dairy Market News – Madison, WI

Eric Graf, 608.422.8590

Email: Eric.Graf@usda.gov

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