Report 47 – Released on November 23, 2021

WESTERN EUROPEAN OVERVIEW:

Seasonally low milk production in the primary Western European dairy countries is adominating factor in current market conditions. Moreover, in Germany and France, the topWestern European milk producers, sources note that milk production is believed to be lowerthan this time last year. That has led to less milk flowing into being manufactured as SMPor WMP. Western European fluid milk needs are being met, as well as enough milk to keepbutter markets mostly steady.

The declining milk production trend is expected to reverse in the next few weeks. Even so,expected increases will be slow to result in any substantial increases in milk availability.The recent increase in governmental COVID related actions to restrict public gatherings hasleft more uncertainty about the near-term future of dairy product demand. The uncertainty iswhether demand will shift appreciably toward home consumption and away from dining out.

Cheese markets are very tight. Remaining scheduled 2021 production is sold out. Buyersseeking cheese now must find it through brokers if they can find it anywhere. Manufacturersin some cases are slowing deliveries to already contracted customers. There are reportedinstances of long time regular customers seeking increased cheese deliveries being turnedaway from manufacturers because no additional milk is available. Even cheese in agingprograms has been drawn down about as far as seems prudent to help short term demand. Filling EU cheese demand and contracts remains a priority. Export customers are being bumpedback. Cheese remains a top profitability item for dairy manufacturers.

Last week the EU Farm Council met. Agriculture ministers from member countries gave theirperspectives as to agricultural matters. There remains an expectation that calendar year2021 EU milk production will be 0.3 percent above 2020.

EASTERN EUROPEAN OVERVIEW:

Eastern European milk production is declining seasonally. Poland is typically the leadingEastern European milk producer. Having focused in recent years on establishing a Polishbrand identity to seek a greater share of EU imports by China, there is some concern inPoland about striving to maintain reliability as a supplier in the face of lower 2021 milkproduction than had been hoped for.

Information for the period November 15 - 26, 2021, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

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