US predicts EU will act over growing dairy supply and low competitiveness

THE United States Department of Agriculture (USDA) has predicted that the European Commission will move to boost the dairy industry early in 2009.

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.