News14 December 2018Brussels, BelgiumAgriculture and Rural Development
Dairy market: biggest sale of skimmed milk power stock to date
Over 60,000 tonnes of skimmed milk powder stocks were sold on 13 December in the biggest sale since public tenders began in December 2016. Approximately three quarters of skimmed milk powder bought into public stock have now been carefully returned to the market.
The latest EU reports on the dairy market published by the Milk Market Observatory this week highlight increased demand and satisfactory farm gate milk prices around 36 c/kg, reflecting a market situation that the careful handling of the stocks by the Commission has contributed to keep in balance. The public tender sale on 13 December reduces EU public stocks to around 100,000 tonnes (down from 380,000 in 2017) and clears stock from Poland, Belgium, Germany, Netherlands and Czech Republic.
Public intervention, managed by the European Commission, played an important role in stabilising markets between 2015 and 2017, helping to remove surpluses in an extraordinarily imbalanced scenario. The Commission opened at the end of 2016 a process of monthly and later bi-monthly public tenders to gradually put these stocks back into the market. This was done in a careful way.