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Milk Powder Offers Into Intervention
May 18, 2016

The volume limit for skimmed milk powder (SMP) offers into intervention at the fixed price could be reached within a month, if powder continues to enter at its current rate, AHDB Dairy reported this week.

The volume ceiling was raised last month to 218k tonnes, but the average daily quantities being put forward have also increased going into the spring flush.

If the limit is reached, SMP offers could become subject to tender again, as they were briefly in April before the volume limit was officially raised. This could put more downward pressure on dairy prices, as the fixed intervention price “floor” of around £1,300/tonne (€1,698/tonne) will no longer be guaranteed.

Ireland’s Agriculture Minister, Simon Creed, called on the European Commission to re-examine the volume limit for fixed price intervention for SMP.

Speaking at a meeting of the EU Agriculture and Fisheries Council, the minister said: “Intervention remains the most effective means available to deal with volatility. Demand for it is very high, and I have therefore called on the Commission to provide for a further increase in the volume limit for fixed price intervention for SMP.

“I think this increase needs to be effected soon, and it should be substantial. I have also asked the Commission to give favourable consideration to a higher rate of advance payments in 2016, removal of customs tariffs and anti-dumping duties on the importation of fertilisers and a deferral of superlevy payments, among other measures.”

Source – The Dairy Site


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