10/07/2009

Dairy crisis: Extension of private storage aid for butter

Yesterday, Member States backed a European Commission proposal to extend the private storage aid scheme for butter from 15 August 2009 until 28 February 2010. World market prices for dairy products have collapsed notably due to a drop in demand in connection with the financial and economic crisis. EU market prices for dairy products have fallen significantly. In November 2008, the Commission reintroduced private storage for butter as a first measure to help stabilise the dairy market. To date about 110 000 tonnes of butter are in private storage. The scheme normally ends on 15 August 2009. In view of the current and foreseeable market situation it is necessary to extend the period until 28 February 2010. The proposal will now be formally adopted by the Commission in the next few weeks.