'The powder was not sold but outright dumped – this price is scandalous': EU farmer leader hits out at intervention milk powder sale
The European Commission sold 4,000t of intervention milk powder in its latest tender. However the price it accepted for the product as sparked severe critism from the European Milk Board (EMB).
The Commission sold 4,337t of SMP out of intervention in the tender with the minimum price accepted understood to be €1,100/t. This was down from €1,190 accepted in the previous tender.
There are now approximately 376,000t of skimmed milk powder in public intervention stocks, effectively overhanging the EU skimmed milk powder market.
"Unfortunately, the powder was not sold but outright dumped – this price is scandalous," said the president of the European Milk Board, Romuald Schaber,which represents some 100,000 milk producers across 15 countries.
"You have the feeling that the Commissioner for Agriculture is trying to get rid of stocks without any concern for the consequences.
"Dumping milk powder in this fashion is very dangerous considering the current market situation and makes conditions even more difficult for milk producers
"Even the minimum price of 215.10 €/100 kg set in December 2016 does not actually correspond to real production value," continues Schaber. "By steadily reducing the selling price to a mere 110 €, policy-makers continue sending the wrong signs," he said.
Mr Schaber said milk prices are already showing a downward trend.