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https://www.ams.usda.gov/mnreports/md_da100.txt
MD_DA100 DA MD DA100 EUROPEAN DAIRY MARKET OVERVIEW MADISON, WI.
January 19, 2017, 2016 (REPORT 3)
WESTERN OVERVIEW: Looking ahead for 2017, the most often heard view in Western Europe is that modest increases in milk production may occur through the year. Milk volumes early in 2017 are expected to be below early 2016 levels. However, expectations are for milk volumes to increase over 2016 on a year on year basis starting in the middle of 2017. Cold weather in many milk producing regions of Western Europe during the first weeks of 2017 is expected to dampen milk production volumes. Reports from Germany are that milk prices paid to dairy producers have firmed slightly. If prices continue to firm, and that pattern develops in other countries in Western Europe,that is expected to help draw higher milk production as the year advances. Many industry participants expect an increase in cheese production with declining volumes of butter and skim milk powder. Thursday, January 19, Eucolait reported provisional information subject to final confirmation that no volumes of SMP were sold in the third tender of intervention stocks which took place on Tuesday, 17 January. EASTERN OVERVIEW: The continuing Russian embargo continues to impact Eastern European dairy producers and manufacturers. Sales to Russia before the embargo were significant for a number of countries. The embargo has required new efforts to establish new markets and address sales challenges. Some smaller players have been squeezed out, while some of the larger players have expanded. Poland is often mentioned as a country that has led many others in the region, in maintaining good performance in the dairy sector. 0930c eric.graf@ams.usda.gov USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: http://www.ams.usda.gov/marketnews/dairy Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home
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