Commission holds firm on price for EU milk powder
Member States have agreed not to sell any skimmed milk powder (SMP) out of public intervention this week after the Commission recommended to refuse all the offers on the count that they were well below prevailing market prices.
Offers were received for a total of 7,490t in this current tender, the prices offered ranged from €1550/t to €1900/t, well below the minimum price set at the first tender on December 15 of €2150.1/t.
The tender, which put on sale the skimmed milk powder that entered into public intervention before November 1, (some 22,000t) started on November 25.
The quantities offered for sale represent roughly 6% of the total 354,000t which went into public storage in 2015 and 2016.
The move to release these first volumes reflects encouraging signs of recovery on the European milk market.
Following a steady slow-down, no further quantities of skimmed milk powder have been put into public intervention since September 2016.
The Commission has said that this week's decision to refuse all offers and wait for better bids at the next tender underlines once more that selling at any cost has never been an option for the Commission.
Instead, it says maintaining market balance and price recovery remain its main objectives.