EUROPE: A reduction in cereal production is expected in the EU in 2005 after the bumper crop last year, reflecting an increase in the set-aside requirement, which will force down the area sown and the likelihood that yields will fall back from last year�s highs. A reduction in output is also in prospect in the Balkan countries where yields are not expected to match last year�s exceptionally good levels.In the European CIS protective snow cover is seen to reduce winterkill and prospects are for a good harvest throughout the region.