Report 49 – Released on December 3, 2020

WESTERN EUROPEAN OVERVIEW:

German observers report that the seasonal valley of milk production has been passed through and production is increasing. Components are also reported to be increasing. A trend of generally increasing milk production is expected to continue until about May 2021. This general pattern is also expected in most of the primary Western European milk producing nations.

EU-UK Brexit negotiations remain ongoing. If no further agreement is reached soon, on January 1, 2021, products entering the EU from the UK will be subject to full customs as well as sanitary and phytosanitary (SPS) procedures, according to Eucolait. Requirements for EU products entering the UK will be phased in over a 6-month period from January to July2021 (in accordance with the UK ‘Border Operating Model’).

Last week, agreement was reached to bridge the current Common Agricultural Policy (CAP) with the future CAP. The current policy expires at the end of 2020. The agreement extends existing rules to the end of 2022. Essentially the extension allows EU member nations to continue making direct payments to rural development participants.

Cheese demand from retail stores has been very strong. This is attributed to more in-home meals resulting from COVID-19 impacts. In some cases manufacturers have had to decline to accept new orders for lack of milk or capacity, or both.

EASTERN EUROPEAN OVERVIEW:

Ukraine exports of primary dairy products January – September 2020 were below January –September 2019. Results include butter, -43.7 percent; SMP, -27.0 percent; WMP, -59.6percent; and cheese, -21.1 percent, according to CLAL data made available to USDA.