Annual Dairy Report 2007
The EU
integrated dairy market is experiencing changes from CAP reform and member
state expansion. High global dairy product prices will not result in a
large increase in dairy production in the EU, as quota limitations remain
a strong moderating force on surpluses, but prices will have a positive
production impact. Notably, demand for cheese inside the EU and abroad
will increase its processing and use. There are potential production and
processing changes in the EU from disease, an upcoming dairy policy
"Health Check", and the desirability of low-fat dairy products among
consumers. This report updates USDA's dairy estimates for the consolidated
EU report to include Bulgaria and Romania, reflecting their new membership
status from January 1, 2007.
GAIN
Report E47093
(October
2007)
EU
agrees on two percent milk production quota expansion for 2008/09
On March 17, 2008, the European Council
agreed on a two percent dairy quota increase for 2008/09, in response to
tight world dairy markets in 2007. Decreasing dairy prices in 2008 are,
however, likely to make the European Commission act cautiously in its
upcoming Health Check debate on the soft landing for the milk quota regime
in 2015.
Implementation of the CAP Reform of 2003, combined with a summer drought,
led to a decrease in EU milk deliveries in 2006. As processors decided to
honor increased domestic and export demand for cheese, EU production of
butter, NFDM and WMP decreased significantly compared to 2005. While
domestic consumption of butter and WMP further increased, consumption of
NFDM decreased as a result of lower use in feed. Exports of WMP and NFDM
decreased, but butter intervention stocks supplemented EU butter supplies.
EU milk deliveries in 2007 are forecast to rebound, although still below
the 2005 level. Further increases in cheese production are forecast to use
this additional milk supply, leaving no room for a recovery in production
of butter, NFDM and WMP. This is forecast to result in continued slow
exports of NFDM and WMP, a further decrease in domestic consumption of
NFDM and the complete depletion of EU butter intervention stocks.
GAIN
Report E47041 (June 2007)
European
Commission Simplifies Milk Regime
The EC approved a so-called "mini-package" of
amendments to various dairy market regulations. The changes mainly include
harmonization of definitions for dairy products between EU member states,
mainly for butter and drinking milk. The amendment also adopts Codex
Alimentarius standards for protein content for Skimmed Milk Powder (SMP).
This dairy "mini-package" is expected to somewhat decrease butter surplus
on the EU market and consequently lead to decreased EU budgetary spending
on dairy. It is however too early to make any speculation on the ultimate
impact on EU dairy PSD's.
GAIN
Report E47016 (March 2007)
EU market for Whey
derivatives
This report describes the production, consumption
and trade of dried dairy products in the EU with emphasis on the whey
derivatives; sweet whey powder, demineralized whey, delactosed whey, whey
protein concentrates (WPCs), whey protein isolates (WPIs), and lactose. It
is generally anticipated that the EU will increasingly have a deficit of
milk proteins. Opportunities for the U.S. dairy sector lay in particular
in the export of WPCs with the higher protein levels, such as WPC 80. A
future WTO agreement that lowers tariffs on whey derivatives should
increase U.S. exports to the EU.
GAIN
Report E36135 (October 2006)
- An archive of EU
and Member State reports is available at
http://www.fas.usda.gov/scriptsw/attacherep/default.asp.
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