EU Releases Milk Powder from Intervention Stocks as Recovery Continues

European dairy markets are showing signs of recovery, with an increase of about 10 per cent of the average price paid to producers in the last 3 months, so EU authorities have decided to release some of the skimmed milk powder (SMP) held in intervention stocks.

A tender procedure to release the first amounts (22,150 tonnes) of SMP out of public intervention stocks opens today following a vote by Member States on the Commission's proposal.

Commenting on the decision, EU Agriculture Commissioner Phil Hogan said: "I am pleased to say that we are seeing something of a recovery in those hardest-hit markets, though we all know how fragile recovery can be in agricultural markets.

"Sustaining this recovery and working towards balance in the dairy market remains a priority. Reflecting the fragile nature of the recovery, the Commission will act with appropriate caution and the tender process will be under constant reassessment to prevent any unnecessary disruption." – Click here to read more.

In other news, a three-pronged approach has been proposed to the Dutch government to reduce phosphate production from 2017, according to UK levy board AHDB Dairy.

At present, the Dutch phosphate limit is 172.9m kg (million kilograms), which has been exceeded for the past three years. Phosphates form a major component of animal manure.

The plan would see a reduction in the dairy herd (with compensation), penalties for those producing more milk than a predetermined reference quantity and reducing the levels of phosphorus in compound animal feeds - read more.