Report 49 – Released on December 9, 2021

WESTERN EUROPEAN OVERVIEW:

Western European milk production is in the low season at about the time historically whentrends reverse to upward. Estimates of production within the primary milk producingcountries are that current weekly milk output lags this time last year.

More severe COVID related actions have led to less food service demand in Germany, Austria,France, and some other countries. However so far, there has not been an evident impact onthe dairy production or processing side of things. The cost of fuel is impactingprofitability by increasing shipping costs. Moving dairy products from plants to customersis more of a challenge because of fewer trucks and drivers than desirable.

Cheese availability is very tight. Stores that have not already stocked up are havingdifficulty finding uncommitted cheese. Any cheese that is available from manufacturersreflects higher prices. Less cheese has been produced in 2021 than had been anticipated.Tight supplies are expected well into Q1 2022.

EASTERN EUROPEAN OVERVIEW:

Cumulative 2021 Poland milk production has been able to remain slightly higher than during2020. Although analysts note that Q2 production offered hope for more 2021 improvement,slower production in Q3 and Q4 so far has tempered expectations. Poland has continued tofavor using milk to make cheese rather than other manufactured dairy products.