Commission to reduce skim milk powder tenders due to ‘limited interest’
The European Commission is to reduce the number sales it has for its stocks of skimmed milk powder (SMP) each month.
It is understood the Commission has acknowledged that there has been limited interest so far, under current market conditions and therefore has decided to reduce the number of tender deadlines per month.
The Commission has deemed that there will now only be one tender period each month instead of two.
European Agriculture Commissioner, Phil Hogan says he won’t sell any of the EU’s giant stocks of skimmed milk powder in intervention until the ‘price is right’
It comes as all offers for the sixth tender of the stock are understood to have been rejected by the Commission last week.
Indeed, according to trade sources prices offered were lower than those offered for pervious tenders.
Speaking to French dairy farmers late last week, Hogan said the 350,000t of SMP in public stores is equivalent to some 30pc of annual EU production.
He said releasing them on the market might disturb the improvement taking place. However, he also said keeping them in the stores also weighs on the market and prevents a healthy recovery.