European countries are back putting milk powder into intervention as prices slump
A host of EU Member States have returned to selling milk powder into intervention as prices continue to slide in 2016.
Last week saw skimmed milk powder (SMP) offered into intervention for the first time this year, with 1,201 tonnes put forward to date.
Both Poland and Lithuania offered around 470 tonnes each, with the remainder coming from Germany.
EU SMP prices have been dropping since the beginning of the year, with the average price sitting at €1,790/tonne for the week ending April 9, according to UK based AHDB.
It says while this is still €92/tonne above the intervention price but, with production rising towards its seasonal peak, some sellers have clearly seen intervention as their better option.
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.