No EU skim sale progress

The winter predictions, that the EU’s mountain of skim milk powder overhanging global markets could hold back milk prices until 2018, gained credence with this week’s Global Dairy Trade auction indicator taking skim prices to an eight-month low.

In several tender offers, the European Commission has sold less than 100 tonnes of its 354,000 tonnes of skim milk powder, bought into intervention storage over the past two years in order to soak up 4.5m tonnes of milk on depressed markets.

Pressure is growing on the EU to sell skimmed milk powder at prices buyers can afford, but the Commission has said so far it will not sell powder at low prices which could upset the dairy market balance and price recovery.