EU intervention stock sales suspended for 2018
The European Commission has suspended any plans to purchase of skim milk powder (SMP) from 1 March to 30 September in an effort to deal with the existing stocks sitting in intervention stores.
Under normal circumstances, the EU had the option to buy up to 60,000t of butter and up to 109,000t of SMP through the intervention scheme during the outlined time period.
However, with 378,051t of SMP in storage as of 1 January and weak demand for the product on global markets, the Commission does not wish to see intervention stocks increase further.
Sales of intervention SMP have been slow with the Commission offering SMP for sale through 17 separate tenders and confirmed sales on just six occasions.
A total of 180t were sold in 2017. The first tender in January 2018 saw 1,864t of SMP sold at €1,190/t, well below the EU’s buying price of €1,698/t.
The most recent tender on 20 February saw 4,337t of intervention skim selling for a reduced price of €1,110/t, and is the largest quantity sold to date.
Arla cuts milk price
Arla has cut its milk price for March by 2.5c/l which means its suppliers in Britain will see a drop of 2.16p/l.
This brings its liquid milk price to 26.08p/l, down by almost 5p/l in a three-month period. Arla’s manufacturing milk price is now 27.11p/l, down from 32.3p/l during the same period. The company announced that 2017 sales increased by 8.1% to €10.3bn with profit before tax down €120m to €385m last year. Arla points to lower profits as a result of paying a higher milk price in 2017 compared with the previous year.
First Milk
Meanwhile, First Milk has reduced its March price by 1.25p/l. This brings its liquid price in Scotland to 26.84p/l, 27.31p/l in Wales and 27.15p/l to 27.19p/l in England.
Elsewhere, Grahams Dairy has reduced its March by 1p to 28.25p/l for March.
Read more
Monday dairy markets: butter prices remain strong in Europe
Dairy management: preparing for the beast
EU intervention stock sales suspended for 2018
The European Commission has suspended any plans to purchase of skim milk powder (SMP) from 1 March to 30 September in an effort to deal with the existing stocks sitting in intervention stores.
Under normal circumstances, the EU had the option to buy up to 60,000t of butter and up to 109,000t of SMP through the intervention scheme during the outlined time period.
However, with 378,051t of SMP in storage as of 1 January and weak demand for the product on global markets, the Commission does not wish to see intervention stocks increase further.
Sales of intervention SMP have been slow with the Commission offering SMP for sale through 17 separate tenders and confirmed sales on just six occasions.
A total of 180t were sold in 2017. The first tender in January 2018 saw 1,864t of SMP sold at €1,190/t, well below the EU’s buying price of €1,698/t.
The most recent tender on 20 February saw 4,337t of intervention skim selling for a reduced price of €1,110/t, and is the largest quantity sold to date.
Arla cuts milk price
Arla has cut its milk price for March by 2.5c/l which means its suppliers in Britain will see a drop of 2.16p/l.
This brings its liquid milk price to 26.08p/l, down by almost 5p/l in a three-month period. Arla’s manufacturing milk price is now 27.11p/l, down from 32.3p/l during the same period. The company announced that 2017 sales increased by 8.1% to €10.3bn with profit before tax down €120m to €385m last year. Arla points to lower profits as a result of paying a higher milk price in 2017 compared with the previous year.
First Milk
Meanwhile, First Milk has reduced its March price by 1.25p/l. This brings its liquid price in Scotland to 26.84p/l, 27.31p/l in Wales and 27.15p/l to 27.19p/l in England.
Elsewhere, Grahams Dairy has reduced its March by 1p to 28.25p/l for March.
Read more
Monday dairy markets: butter prices remain strong in Europe
Dairy management: preparing for the beast
SHARING OPTIONS