Commission to reintroduce export refunds on some dairy products

THE severity of the fall in milk prices over recent months has surprised many, according to European Union Farm Commissioner Marian Fischer Boel.

“I have spoken to many producers during my travels to different member states and their anxiety is clear.

“Now it is time for the European Union to help,” she said, outlining the new measures.

The commission will reintroduce export refunds for butter, skimmed milk powder, whole milk powder and cheese at next week’s EU management committee meeting.

In addition, when intervention buying for butter and skim milk powder opens in March, the commission will purchase more than the fixed quantities of butter (30,000 tonnes) and skim milk powder (109,000 tonnes) should the market situation warrant it.

The commission re-introduced private storage for butter last November with effect from January 1, 2009 — including butter produced in December.

Ms Fischer Boel said she believes the measures will go a long way to stabilising the market.

Following the unprecedented price rise for milk and dairy products in 2007 and the beginning of 2008, the situation on the dairy market has now been completely reversed.

With increased supplies on the world market and reduced demand on the internal market, market prices for dairy products have been forced down to close to or even below intervention levels.

Obviously, the price paid to milk producers follows the same route with substantial price decreases already recorded and with further falls likely.