Upon a Commission's proposal, Member States have agreed on not selling SMP out of public intervention this week. Offers were received for a total of 11 914 tonnes, but the price range was too far from the prevailing market price and from the minimum selling price set at the previous tender. 21 962 tonnes are available for the next tender (17 January).
The tender to put on sale the skimmed milk powder that entered into public intervention before 1 November 2015 (some 22 000 tonnes) started on 25 November. The quantities offered for sale represent roughly 6% of the total 354 000 tonnes, which went into public storage in 2015 and 2016.
In total, bids offering different prices were received under this second tender for 11.914 tonnes. Offered prices ranged from 165.1 €/100 kg to 196.1 €/100 kg. The minimum price set at the previous tender was 215.1€/100kg.
Yesterday's decision shows again that selling at all costs was never an option for the Commission and that the maintenance of market balance and price recovery remained its main objectives.
A third tender for the sale of the remaining quantity (21 962 tonnes) is open with 17 January 2017 as the deadline for submitting offers.
The move to release these first volumes reflects the encouraging signs of recovery being seen on the European milk market. Following a steady slow down, no more quantities of skimmed milk powder have been put into public intervention since September 2016, even though this market measure remains open.