The EU commission is inviting offers to buy butter and skimmed milk powder out of intervention.
Currently there are some 76,000t of butter and 257,000t of powder in EU stores. First tenders have to be submitted by traders by 1 June, with a decision by the management committee on 3 June (two weeks today).
The EU insists it will fix the price and volume to be released "taking into account the market situation".
Given that commodity markets have started to recover and some of this benefit is finally filtering through to farmers, the hope must be that Brussels market managers act with great prudence.
| Tweet |
|
Phil I have only recently found your blog I farm in the United States of America in the State of Iowa. We milk 140 cows. I Blog for a couple of farm magazines for thier dairy sites. My question for you is this: Why is the EU releasing these products at this time. In America we are told constantly that we are awash in milk all around the world if that is true why would your agriculture ministry be releasing Goverment holdings to me that would be an even further depressent to the market. Are you folks actually short on milk? Thank you for your response. JR
The stocks of powder and butter were taken in by the EU Commission during 2009 when prices were very depressed and farmers across Europe were pouring milk away in high profile milk strikes.
Butter and powder prices recovered last winter and now cheese prices have strengthened too in response to tighter supplies in Europe, and also in the Southern Hemisphere.
The markets are still delicately poised, but the EU has decided now is the time to start releasing some of the stocks. I expect they will opt for "a little and often" rather than swamping the market and triggereing another price collapse.