European agriculture commissioner Phil Hogan told dairy markets in no uncertain terms last week that the 380,000t of skimmed milk powder (SMP) sitting in intervention across Europe had to be sold.

Speaking at the Irish Farmers Journal Dairy Day event in Punchestown last week, Commissioner Hogan made it very clear that buyers would have to be found for the SMP stockpile sitting in intervention, which continues to overhang the market.

Hogan also sent a clear message to Europe’s dairy industry that the European Commission would not prop up the market in 2018 as it has done over the last two years.

“I was the only buyer for SMP in 2017, but I won’t be the only buyer next year. At a time when the next EU budget is being negotiated, I cannot enter negotiations with half a million tonnes of SMP sitting in intervention stores,” said Hogan.

Despite the comments, SMP prices remain at rock bottom levels this week, around the €1,450/t mark.

The Commission sold 40t of SMP out of intervention last week for €1,390/t, which highlights how little appetite there is in the market right now.

Friesland lowers the price

In the Netherlands, FrieslandCampina has lowered its December milk price slightly to 42.7c/litre (€4.15/kg of milk). The November milk price stood at 43c/litre (€4.18/kg).

FrieslandCampina said the cut in the December milk price is due to a downward trend for dairy products across Europe, especially for butter and cheese.

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