EUROPE: A strong recovery in cereal production is expected in the EU in 2004, reflecting better weather after drought last year, favourable price prospects for cereals and a 5 percent reduction in the set-aside requirement. A substantial output recovery is also in prospect among the central and eastern European countries reflecting favourable weather and good price prospects. In the European CIS, despite favourable weather conditions, area planted with winter cereals is below average due to lack of sufficient planting material.