European Union (EU) milk deliveries in 2017 are expected to remain consistent with 2016 levels. Post forecasts that cow inventories will stabilize in 2017. Milk reductions resulting from unfavorable weather conditions during the first half of 2017 will be offset by higher output during the second half of the year. In 2017, cheese production is expected to increase due to strong global and domestic demand. Butter and non-fat dried milk (NFDM) production is expected to decrease due to the limited availability of raw milk. Whole dry milk (WDM) production should remain stable. To date, the EU’s dairy market in 2017 has been primarily driven by large publically-held stocks of NFDM and recordhigh butter prices. Post forecasts that 2018 milk deliveries will grow by 0.1 percent based on higher milk production, particularly as herd sizes remain stable next year.