17 November 1999
EU milk aid hits poor nations

EUROPEAN Union export subsidies on milk are undermining small-scale dairy farmers in developing countries, according to a report by the aid agency, Action Aid.

Milk producers in the EU receive a subsidy of Euro900 (£573) for each tonne of milk powder exported. The world market price is around Euro1160/t.

Action Aid said farmers in developing countries have to compete with all kinds of subsidised products from the EU, the USA and other OECD countries.

It says the 1994 World Trade Organisation agreement on agriculture has exacerbated the problems.