US predicts EU will act over growing dairy supply and low competitiveness
Milk prices have fallen since mid-year without action by the commission, which in June temporarily scrapped dairy export subsidies for the first time in 40 years, because of record high dairy product prices.
“The situation may change towards the beginning of 2009,” said the USDA in its Foreign Agricultural Service report.
“Growing supplies, lower competitiveness of European dairy products on the world market, and stable domestic consumption will put strong pressure on the EU authorities to build intervention stocks, subsidise consumption, or re-introduce export refunds.”
