MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  March 02, 2017 (REPORT 9)                          

WESTERN EUROPE                                                   
INFORMATION GATHERED  02/20/2017 - 03/03/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL:   

Butter prices in Western Europe firmed at the bottom of the 
price range but are steady at the top. German and Dutch butter 
price firming primarily accounted for the price strength. 
Butteroil prices firmed.

Few longer term butter contracts have been finalized. Both 
sellers and buyers are content to move forward with shorter term 
butter contracts because each lacks confidence in their 
expectations for future prices and production. Neither wants to 
bet wrongly on a long term basis. Current buying interest is 
stronger for block butter than packaged butter.

Total 2016 butter production in European Union member counties 
was up 2.5% from 2015 according to Eucolait. Note however, that 
EU 2016 butter production each month beginning September has 
been lower than the corresponding 2015 month. 

Of the top 4 EU butter producing nations, 2016 annual production 
was up from 2015, as well as December 2016 versus 2015, in 
Ireland (+4.3%, +4.7%), as well as Poland (+8.6%, +2.1%). In the 
two countries producing the most EU butter during 2016, annual 
2016/2015 production as well as December 2016/December 2015 
production was lower. These countries are Germany (-0.5%, 
-11.2%), and France (-2.8%, -15.2%). 

European Union butter exports for 2016, 164,347 MT, were 20.8% 
higher than 2015 exports according to Eucolait. For the year, 
the main destinations were the U.S., 11.8%; Saudi Arabia, 11.7%; 
and Egypt, 7.7%. Butter imports for 2016, 7,556 MT, were 8.1% 
below 2015. The main origins were New Zealand, 71.9%; Ukraine, 
9.1%; and Iceland, 5.4%.
Buttroil exports for 2016, 42,985 MT, were 14.9% higher than 
during 2015. Main destinations for the year were China, 33.9%; 
Hong Kong, 10.1%; and Saudi Arabia, 8.6%.

                                             

82% BUTTERFAT:            4,250 - 4,450                          
99% BUTTERFAT:            4,825 - 5,300                          


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