Report 33 – Released on August 19, 2021

WESTERN EUROPEAN OVERVIEW:

Cooler temperatures across northern Europe have aided cow comfort, but milk collections areseasonally declining. Milk production in some of the major dairy regions are well behindlast year. Sources attribute the milk decline to poor weather at the start of the year andlower quality forages. However, industry contacts also note a reduction in cow numbers andfarms. Milk prices have not kept up with higher feed costs. As a result, contacts say theyhave seen some farms exit due to the squeeze on farm financials.

The European Commission extended the implementation deadline of new health certificaterequirements for the imports of milk and milk products to January 2022. The new certificaterequirements would require animal health monitoring, veterinarian signoffs, a 3-monthresidency of cows prior to milk shipments and other requirements. The delay ofimplementation gives dairy officials from the United States and Europe more time to putplans in place that can better serve the industry and avoid possible disruptions tointernational trade.

Western European Secondary Data:

EU milk production January – June 2021 is estimated at 74,539,000 MT, unchanged whencompared to January – June 2020 EU milk production, according to CLAL data made available toUSDA.

Among some of the top Western EU milk producers, the percentage changes January-June 2021compared with January-June 2020 are Germany, -1.7 percent; France, -1.5 percent;Netherlands, -1.3 percent; Italy, +3.2 percent; and Ireland, +7.2 percent. UK milkproduction during January-June 2021 increased 0.9 percent from January-June 2020.

According to Eurostat data, among some of the leading Western European milk producingcountries, the monthly milk production percentage change for June 2021 compared with June2020 and May 2021 are Germany, -1.3 percent, -5.8 percent; France, +0.8 percent, -9.0percent; Italy, +5.0 percent, -7.9 percent; Netherlands +0.4 percent, -4.5 percent; andIreland +3.7 percent, -9.5 percent.

EASTERN EUROPEAN OVERVIEW

:Dairy growth is continuing across eastern European countries, such as Poland. The countryhas realized year over year growth in milk production. Milk components are also strong, with milksolid collections ahead of previous years as well.

Eastern European Secondary Data:

For Eastern EU27 countries, according to CLAL data made available to USDA, January – June2021 milk production in Poland was 6,387,000 MT, up 0.5 percent from January – June 2020.According to Eurostat data, June 2021 milk production in Poland was 1,077,530 MT, up 0.7percent from June 2020, but down 4.4 percent from May 2021.