MD_DA104 DA MD DA104 Butter/Butteroil - Europe MADISON, WI. September 28, 2017 (REPORT 39) WESTERN EUROPE INFORMATION GATHERED 09/18/2017 - 09/29/2017 U.S. DOLLARS PER METRIC TON, FOB PORT WESTERN EUROPE BUTTER/BUTTEROIL: Butter prices in Europe weakened, ending a period of increases. The price range for butteroil narrowed, lower at the top and higher at the bottom. Opinions are cautious as to whether this marks a turning point for butter, or merely a pause. Lower butter production earlier during 2017 is a factor often mentioned as helping drive higher prices. Recent diminishing consumer demand for butter in Germany and France has been noted. Resistance to higher retail prices is certainly a factor. Here again, whether a new trend or an aberration has yet to come into focus. Through July 2017, European butter production is down 5.1 percent from the same period last year, according to Eucolait. July production is 1.3 percent below July 2016 butter production. Among the top seven butter producing countries, only Ireland, Italy and Poland have January-July production above last year; 9.9 percent 0.7 percent, and 1.0 percent respectively. The two largest butter producers, Germany and France, are down 6.2 percent and 8.9 percent, respectively. If you are reading the text version of this report, you will not be able to see graphs which can be viewed at https://www.ams.usda.gov/mnreports/dywweeklyreport.pdf when the Dairy Market News Weekly report is released Friday of the report week. Data from Eucolait. Chart by USDA Dairy Market News January-July EU butter exports, 91,540 MT, declined 15.5 percent from the same period one year earlier, according to Eucolait. The range of monthly percentage changes in cumulative export volumes varies from -21.5 percent in February, to -10.5 percent in January. Export volumes and primary destinations are shown in the following table: EU Butter Exports Main Three Destinations January-July 2017 Destination Quantity(MT) Percent of Total U.S.A. 15,932 17.4 Saudi Arabia 6,358 7.0 Iran 5,913 6.5 January-July EU butteroil exports, 19,614 MT, declined 28.3 percent from the same period one year earlier, according to Eucolait. The range of monthly percentage changes in cumulative export volumes varies from -62.4 percent in January, to -27.7 percent in June. Export volumes and primary destinations are shown in the following table: EU Butteroil Exports Main Three Destinations January-July 2017 Destination Quantity(MT) Percent of Total China 3,422 17.5 Saudi Arabia 2,772 14.1 Indonesia 2,092 10.7 January-July EU butter imports, 4,022 MT, increased 48 percent from the same period one year earlier, according to Eucolait. The range of monthly percentage changes in cumulative import volumes varies from +15.7 percent in May, to +48 percent in July. Import volumes and primary destinations are shown in the following table: EU Butter Imports Main Three Destinations January-July 2017 Destination Quantity(MT) Percent of Total New Zealand 2,588 64.3 Ukraine 1,257 31.2 Iceland 75 1.9 82% BUTTERFAT: 7,750 - 8,225 99% BUTTERFAT: 7,125 - 9,325 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