Report 43 – Released on October 28, 2021

WESTERN EUROPEAN OVERVIEW:

Western European milk production is nearing the seasonal low point for the year. With outputvolumes at or below last year’s levels, milk supplies are tight. Manufacturers are seeingcosts increase for milk and cream used for processing. While seasonal milk flows typicallyturn the corner in November and begin increasing, industry contacts do not see signs of muchyear over year growth for the whole of western Europe over the next few months. Farmers facehigher feed costs. Even with favorable milk prices, margins may not give farmers theincentives to pursue higher milk production in the near term.

Market observers report strong Q4 dairy product demand. With approximately 70 percent ofthe population vaccinated in Germany, France and other western European countries, contactsthink that potential further lockdowns may be limited in the region. Food service and retaildemand are returning to typical levels. Retailers are stocking up ahead of the winterholiday season. As buyers see tight supplies for dairy products globally, there is anincrease in inquiries from both within Europe and in international markets.

WESTERN EUROPEAN SECONDARY DATA:

EU raw cows’ milk delivered to dairies January – August 2021 is estimated at 99,175,000 MT,unchanged when compared to January – August 2020 EU milk production, according to CLAL datamade available to USDA. Among some of the top Western EU milk producers, the percentagechanges January-August 2021 compared with January-August 2020 are Germany, -1.5 percent;France, -1.1 percent; Netherlands, -1.9 percent; Italy, +3.3 percent; and Ireland, +6.2percent.

EASTERN EUROPEAN OVERVIEW:

Eastern European milk production is trailing down along seasonal patterns. However,officials in Belarus see great opportunity for growth. The dairy industry in Belarus hasgrown by more than 10 percent in the last five years. The needs of the domestic market arebeing met, and farmers, processors and traders are aligned to sell dairy products intoexport channels. Improving cow productivity is seen as an avenue for increasing gross milkproduction.

EASTERN EUROPEAN SECONDARY DATA:

According to CLAL data made available to USDA, September 2021 raw cows’ milk delivered todairies in Ukraine was 777,500 ton, down 5.1 percent from September 2020. Year-to-date milkdeliveries through September 2021 in Ukraine, 6.813 million ton, decreased 6.1 percentcompared to year-to-date milk deliveries through September 2020.According to CLAL data made available to USDA, September 2021 raw cows’ milk delivered todairies in Belarus was 646,000 ton, up 0.1 percent from September 2020. January – September2021 milk production in Belarus, 5.946 million ton, increased 0.7 percent from January -September 2020 according to CLAL data made available to USDA.

Information for the period October 18 - 29, 2021, issued biweekly

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

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy