Report 39 – Released on September 30, 2021

WESTERN EUROPEAN OVERVIEW:

Milk deliveries in Western Europe are still seasonally declining. Industry contacts expectthis trend will continue for the next month or two. In addition, cream and skim milkconcentrate supplies are tight, and prices for dairy processing materials are rising. As aresult, processors report manufactured dairy production is also constricted and gettingsurpassed by current demand. While export demand is present, European dairy demand is stableand taking up much of the available manufactured dairy products.

Milk prices are trending higher, but feed costs are also high. European dairy farmers arefeeling some financial pressures. The thin margins are making it more difficult for farmersto expand milk output within Europe. Some industry contacts believe milk growth may notoccur until next year.

EASTERN EUROPEAN OVERVIEW:

Like the other major milk producing countries in Europe, milk production in Poland, andother parts of Eastern Europe, is in seasonal decline. Milk components are also lower. Withtight farm milk availability, processors are working to fill contracted needs first.Manufactured dairy product stocks are also snug.