The report indicates a record EU cereal harvest (317 million tonnes) this year, following on from a very good crop last year. In the dairy sector, two years of high prices both at EU and world level have resulted in strong increase in milk production, with deliveries in 2014 expected to reach a record of 146.4 million tonnes (+3.7%).
The recent decline in dairy prices has been exacerbated by the Russian import ban imposed in August 2014, and the report indicates that much of the milk previously used to produce cheese destined to Russia will be channelled into SMP and butter.
See http://europa.eu/!QG77Gp
