Milk price is the final blow for intervention SMP

The European Union (EU) will purchase 2018 tons of skimmed milk powder at a fixed price in 0. The measure will be published on January 31, after which the derogation (which regulates the change) will come into effect. It does not mean that there is no longer any intervention at all, because if the situation requires it, the EU can still issue a tender. The volume and price are examined and determined per tender.

Safety net in the dairy market partly gone
By stopping the purchase of milk powder at a fixed price, the Council wants to prevent the safety net from being used incorrectly. In addition, she also wants to prevent the market from being further disrupted. The Council incorrectly refers to the 357.359 tons of milk powder that could be found in stores at the end of 2017. Until September 30, another 22.710 tons were added. Striking because the milk prices of 2017 did not require intervention. 

De uneven growth between the fat and protein price was the reason why intervention was called for. For example, butter fetched higher prices, but skimmed milk powder was difficult to sell. As a result, fixed-price intervention became a good destination for the by-product of butter production.

The Council indicates that it will take into account that milk production will increase in 2018. "These extra liters of milk contribute to an increase in the production of butter and skimmed milk powder. According to the Council, a high demand for butter and cheese will ensure that milk prices rewarding level despite the low prices for milk protein."

Op February 20 the EU will make another attempt to sell skimmed milk powder from intervention. It is the largest tender to date.