Report 29 – Released on July 22, 2021

WESTERN EUROPEAN OVERVIEW:

In contrast to the last five hot dry summers, market observers suggest the 2021 Europeanmilking season has had a little of everything. After a slow start, due to cool rainyweather, milk production levels picked up and then were quelled by hot weather and now heavyrains. While the major flooding in parts of western Germany, the Netherlands, Belgium,France and Luxembourg may not have been in the primary dairy regions, the loss of life anddamage caused by the flood waters cannot be understated. Dairy contacts say damaged roads,power outages and communication disruptions have delayed some milk collection and taken afew milk processing facilities offline. It may be some time before the full impact of thestorms and flooding is known. The heavy rains extend across a wide path of central Europe.

Areas that did not flood should have good pasture quality and healthy feed grain crops intofall.Markets for dairy products are quiet as much of the continent is on summer holidays. Commonfor this time of year, sales transaction volumes are lower, and retail demand is subdued.While food service demand for dairy products has increased thanks to restaurants reopening,increased COVID cases in some locations has infused the market with a lingering feeling ofuncertainty. Buyers are hesitant to take on more dairy product inventories for fear of newlockdowns or weakened export opportunities.

EASTERN EUROPEAN OVERVIEW:

With increasing volumes of milk used in cheese making, Belarus and Poland are growing theirexport capacity for dairy products. Exports of cheese and butter from Belarus are findingtheir way into many Eastern European countries, especially Russia, while significant amountsof Polish cheese are moving into other EU countries. Both Poland and Belarus have increasedthe shipments of whey powder to China.

Secondary Sourced Information:

UK milk production January – May 2021, 6,342 MT, increased 1.6 percent from January – May2020 according to DEFRA data reported by Eucolait. May 2021 milk production increased 1.5percent from May 2020.Milk exports from the UK January – May 2021, 354,273 MT, increased 2.7 percent from January– May 2020 according to Trade Data Monitor and Eucolait. The main destination was the EU27.

 Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@usda.gov

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