MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  February 05, 2009 (REPORT 5)                       

WESTERN EUROPE                                                   
INFORMATION GATHERED  01/26/2009 - 02/06/2009                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL:  European butter markets and prices are weak.  The recently 
announced export subsidy for butter is having limited impact on international 
sales activity.  Traders and handlers indicate that current prices, less the 
subsidy, still leaves European butter prices higher than other international 
offerings.  In Europe, current prices less the subsidy equals about $2325 which 
is well above some international offerings that are under $2000.  Traders 
indicate that nearly doubling the subsidy would be needed to get European 
offerings competitive in the international market place at current price levels.  
Butter continues to clear to PSA, but producers and handlers feel that this 
clearance will slow as butter will soon be able to be produced for intervention 
offering on March 1.  Butter can be produced for intervention offering 23 days 
before March 1.                                                 

82% BUTTERFAT:            2,500 - 2,750                          
99% BUTTERFAT:            2,900 - 3,100

0930c steve schneeberger  (608)250-3204