Report 23 – Released on June 4, 2020

WESTERN OVERVIEW:

In Western Europe sources believe milk production is near the expected seasonal high in the primary milk producing countries. Dairy plant operators say they typically notice the seasonal decline right after the fourth week in May. Early reports of German production last week suggest slightly higher milk production than one year earlier. There are some concerns voiced that fat and protein content may be a bit lower than this point last year. Milk production in France compared with one year ago is believed to be slightly lower.

German milk producers report warm, summery weather for the past two weeks. This has resulted in some undue dryness in pastures. Rain is expected in coming days. That is hoped to give a boost to pastures.

Cheese production to supply food manufacturing continues to be active. Food manufacturers have been increasing schedules to meet food service demand in recent weeks. Filling restaurant demand has also been active. Retail sales have been steadier. Retail grocery store orders for cheese are now considered to be in the normal range. Cheese stocks are moving closer to being considered to be in balance.

Applications for Private Storage Aid (PSA) for cheese during the fourth week of the current program, May 25 – 31, 2020, totaled 2,465 MT according to Eucolait. The total amount of cheese in PSA is 40,302 MT, 40 percent of the fill rate. Country allotments have maxed out for Ireland, Estonia, Italy, Sweden, and the United Kingdom. Belgium is 5 percent away from its allocation. Among the largest cheese manufacturers, Germany has used only 2 percent of its allocation. France has used only 22 percent.

EASTERN OVERVIEW:

Milk production in Eastern Europe is believed to have peaked for the season. Weather conditions have been favorable for milk production. However, it is beginning to become a bit dry so rain will be welcome. Current milk volumes are keeping dairy manufacturing plants busy.

     Information for the period May 25 -  June 5, 2020, issued biweekly

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