Report 33 – Released on August 15, 2019

WESTERN OVERVIEW

With official data now available, January – June EU milk production is ahead of the same period last year, up 0.2 percent according to CLAL data provided to USDA.

The thin margin of the milk production increase over last year through June isnļt as comforting as many had hoped would be the case when 2019 began. Yes, it is an increase. Yes, European Commission projections expect the perecentage margin to increase further by the end of 2019. But another round of unusually hot weather in Germany and some other countries in early August once again set weekly milk production back below the same week in 2018. Several episodes of this during the summer have somewhat constrained previously expected cumulative 2019 increases.

Stronger farmgate milk prices may help increase production because dairy producers may increase feeding to boost production. The January ą June EU farm gate milk pay price is reported by CLAL to be 2.6 percent higher than January ą June 2018. The reported price is 34.24 euros/100 kg. January – June EU cheese production, 4.824 million MT, is ahead of the same period last year, up 0.3 percent according to CLAL data provided to USDA.

The cheese market in Western Europe is balanced. However, less cheese has been produced in 2019 than desirable. Lower than expected milk production increases are the reason. Cheese making is currently the typical use for any extra milk.

EASTERN OVERVIEW

Belarus has reported mixed dairy export results January ą June 2019 compared with January ą June 2018, according to Eucolait: butter, 35,476 MT, -10.7 percent; cheese, 115,316 MT, +18.5 percent; and SMP, 57,817 MT, +35.2 percent.

Information for the period August 5 – 16, 2019, issued biweekly

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

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