Report 35 – Released on September 2, 2021

WESTERN EUROPEAN OVERVIEW:

Milk deliveries across Europe continue their seasonal decline. Besides the natural wind downof the milk season, industry contacts say that high feed costs are placing financialpressures on farmers. In the first half of the year, dairy farmers have culled cows at ahigher rate than in 2020. In addition, contacts suggest farmers are retiring without thenext generation taking over the farm.

Dairy markets are becoming more active as Europeans return from summer holidays and schoolterms resume. Dairy product consumption is recovering, and market demand is slowlyincreasing as buyers recognize the need to refill supplies and prepare for the next fewmonths. Retail, food service and food manufacturing markets are creating more opportunitiesfor sales of dairy products. Currently, dairy supplies are not keeping up with the demand.Some contacts anticipate an upward movement of dairy product prices due to increased buyeractivity and seasonal milk declines.

EASTERN EUROPEAN OVERVIEW:

Milk deliveries in Eastern Europe are slowing seasonally. Industry sources suggest thatalthough less milk is making its way to processors, dairy product manufacturing is wellbalanced with demand. Eastern European cheese sales are stable.

Eastern European Secondary Data:

January – July 2021 milk production in Belarus, 4.606 million ton, increased 0.9 percentfrom January – July 2020 according to CLAL data made available to USDA.