Mexico may emerge as EU dairy shopper

Cooling trade relations with the US will make the EU’s mountain of stored dairy products increasingly attractive to Mexico, according to dairy trade analysts at Rabobank.

The sale of the EU’s intervention stocks is equivalent to about one month of global dairy trade, consisting of skim milk powder and other products made from 4.5m tonnes of milk.

Since December, in four attempts to sell some of its 354,000 tonnes of skim milk powder, the EU got rid of only 40 tonnes. This dairy product overhang casts a shadow on world dairy markets, and may take years to sell off.