European Dairy Market Overview
MD_DA100
DA
MD DA100 EUROPEAN MARKET OVERVIEW
MADISON, WI.  May 11, 2017 (REPORT 19)

WESTERN OVERVIEW:


      Dairy trade with Canada is a focus of dairy interests in 
Europe. European officials believe the Canadian Senate could be 
finished with their third reading of the EU-Canada Comprehensive 
Economic and Trade Agreement (CETA) agreement text by the end of 
May, meaning that CETA could enter into provisional application 
in July 2017. 
      The biggest gain for EU dairy is the additional access 
granted to cheese in the form of a duty free quota (18,500 MT 
from year 6 of the agreement). 16,800 MT of this quota will be 
set aside for high value consumer or 'fine' cheese and the 
remaining 1,700 MT will apply to industrial cheese. Undetermined 
so far is how Canada will allocate licenses under the treaty. 
      German dairy processors report lower milk deliveries in 
April compared with April last year. Similar observations were 
made in France. Contributing factors were cooler than normal 
recent weather resulting in slowing pasture development. Data 
reporting German bulk milk exports to Italy, primarily to make 
cheese, have been updated this week and reported by CLAL. 
January bulk whole milk exports, 22.2 million metric tons, were 
a 0.9% decrease from January 2016. January bulk skimmed milk 
exports, 13.1 million metric tons, were a 6.6% increase from 
January 2016. 
      Efforts in various European countries to increase infant 
milk formula exports to China have led to overall increases. 
January-March 2017 exports compared with one year earlier, had 
the following percentage share of the China import market and 
percentage changes in imports: Netherlands, 31%,+12%; Ireland, 
17%, +17%; France, 13%, +168%; Germany, 9%, -6%; Denmark, 5%, 
+22%; and Switzerland, 3%, +153%.

EASTERN OVERVIEW:

	Belarus continues to be the leading source of Russian 
imports for various dairy products according to Eucolait. 
January-February Belarus exports to Russia in metric tons and 
the percentage of total Russian imports are as follows: butter, 
9,525, 66.8%; SMP, 15,972, 79.4%; WMP, 2,832, 28.7%; and whey 
powder, 13,853, 88.8%. 

0930c eric.graf@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-
news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home