European Dairy Market Overview
USDA - Thu Nov 09, 9:19AM CST
MADISON, WI.  November 9, 2017 (REPORT 45)


       Signs are that when September milk production is reported in some 
of the top producing countries in the EU, production will be higher 
than September last year. Early observations point to Ireland 
continuing to produce more milk in September 2017 than September last 
year. Some estimates are of 10 percent higher. The United Kingdom too, 
is expected to report higher September milk production than one year 
earlier. Expectations are over 5 percent higher. German sources 
believe September milk production there may be up 3.7 percent. In 
France, a 6.4 percent increase for September is what some observers 
       Early this week, agriculture ministers of many EU nations met. 
Among the topics discussed was trade negotiations. An expected outcome 
is formalizing approval of trade discussions between the EU and 
Australia, also New Zealand. That could be approved as early as 
November 10.


	Some Polish dairies have expanded sales of UHT milk to China. 
While most shipments currently go by ship, a 45 day trip, that may 
change as the upgrades to the rail line from Europe to China move 
toward completion. The rail line begins in Western Europe then travels 
through Poland, giving Poland the advantage of being closer to China 
than most of Europe. When operational, the rail option will reduce 
transit time to 15 days.
	A recent report from a dairy promotion organization in Great 
Britain notes that an outcome of the 2014 Russian import ban, has been 
accelerated development of the dairy industry in Russia. Dairy 
producers have been incentivized by the Russian government, as well as 
benefitting from less competition from abroad. Dairy processing 
capacity in Russia has expanded, benefitting from targeted subsidies, 
investment credits and loans in order to support further growth. 
Foreign investors are also showing interest in accessing the 
undersupplied Russian market, with large investments from some Asian 

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