MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  March 30, 2017 (REPORT 13)                         

WESTERN EUROPE                                                   
INFORMATION GATHERED  03/20/2017 - 03/31/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL:                                                

       Butter prices in Western Europe firmed, as did butteroil prices.
 
       The current supply of butter in Western Europe is seasonally 
low. With greater consumer interest in dairy fats, some manufacturers 
are evaluating whether the butter market might face an undersupply 
situation in the coming months. In other words, butter supplies may 
remain in short supply during 2017. Supplying domestic markets is 
expected to be a priority over exports, so exports could suffer if 
tightness continues. Manufacturers using butter are pondering 
changing formulations to reduce butter content. However this 
obviously requires some lead time due to the need to create new 
product labels as well as changing the manufacturing process. 

       Butter production in Western Europe during January this year was 
1.1% lower than January last year according to Eurostat. EU exports 
of butter during January 2017 declined 10.5% from January one 
year earlier, according to Eucolait. Export volumes and primary 
destinations are shown in the following table:

Main Three Destinations 
January 2017 

Destination  Quantity (MT) 	% of total  
USA 			1,857 		19.3% 
Saudi Arabia 	  624  		 6.5% 
Singapore 	  561  		 5.8%

      EU imports of butter during January 2017 increased 42.1% 
from January one year earlier, according to Eucolait. Import 
volumes and primary sources are shown in the following table:

Main Three Origins 
January 2017 

Origin  	Quantity (MT)  % of Total  
New Zealand 	670  		98.6% 
Norway 		  3  		 0.5% 
Jordan 		  3  		 0.4%

      EU exports of butteroil during January 2017 declined 77.6% 
from January one year earlier, according to Eucolait. Export 
volumes and primary destinations are shown in the following 
table:
      
Main Three Destinations 
January 2017 

Destination	Quantity (MT)  % of Total  
Saudi Arabia 	332  		21.9% 
Indonesia 	289  		19.0% 
China 		144  		 9.5%

                                     
82% BUTTERFAT:            4,625 - 4,725                          
99% BUTTERFAT:            5,150 - 5,400                          


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