First significant sale from EU’s giant milk powder stockpile - sources
'Situation in respect of existing stocks cannot be allowed to persist indefinitely' - Creed
It is understood that the first significant sale of milk powder from the EU’s giant intervention stockpile has been made this week.
Sources in Brussels have said that in this week’s tender 1864 tons of SMP was sold out of intervention at minimum price of €1190/t.
Between mid 2014 and the end of 2016 dairy markets experienced significant difficulties.
This was due to a combination of factors including increased global supply, the effects of the Russian ban on the import of EU agri-food products and reduced global demand, notably for dairy products in China.
During that phase of volatility, the EU Commission, responded to these difficulties through the deployment of support measures, including intervention provided for under the CAP
Key among these measures was the buying of skimmed milk powder (SMP) into intervention. Ireland's industry placed some 37,000 tonnes of product into intervention between September 2015 and the end of 2016.
There are now approximately 376,000 tonnes of SMP in public intervention stocks, effectively overhanging the EU SMP market.
In response to parlimenary questions this week, the Minsiter for Agriculture Michael Creed said his Department engaged with the Commission on recent proposals to limit further piling up of SMP in 2018.