Skim milk powder (SMP) stocks of over 370,000t in intervention need to be sold before the next Common Agricultural Policy (CAP) is negotiated.

This is according to European Commissioner for Agriculture Phil Hogan, who was speaking at the Irish Farmers Journal Dairy Day last week.

“At a time when the next EU budget is being negotiated, I cannot have half a million tonnes of SMP in intervention stores.

"We are entering the key negotiation period for the next European budget, and the CAP is going to come under pressure as never before. You all understand the implications of Brexit, which is blowing a huge hole in the overall budget.”

Hogan said if he is to be in the strongest possible position to defend the CAP budget, he cannot enter the negotiations with thousands of tonnes of SMP in storage.

Listen to "Dairygold CEO Jim Woulfe on the butter prices and SMP" on Spreaker.

Meanwhile, speaking at the recent Carrigaline Macra ag-talk, Dairygold CEO Jim Woulfe said that not moving SMP out of intervention during the peak months was possibly a lost opportunity.

Lakeland CEO Michael Hanley has called for as much SMP stocks as possible to be sold for calf milk replacer.

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Hogan delivers a blunt message on SMP stocks

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