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The council of EU agriculture ministers decided on Monday to keep fixed-price intervention for skimmed milk powder (SMP) out of action for 2019.
This means that, just like this year, processors will not have a guaranteed outlet to sell SMP into the European scheme at €1,698/t in case of a market crisis, as was the case in previous years.
Current rules
Instead, the current rules remains, allowing EU experts to open tender for intervention SMP on a case-by-case basis, without a guaranteed minimum price.
"In 2018, EU market prices for skimmed milk powder have remained on average some 19% below the public intervention level, while butter prices have been 117% above the public intervention level, thereby widening the fat-protein price gap," the council said in a statement.
The average EU price for SMP in August was €1,560/t, while butter traded at €5,100/t.
European authorities consider that high butter prices, rather than adding to large SMP intervention stockpiles, is what makes up for poor SMP value.
This continuing situation justifies the decision to keep fixed-price SMP intervention closed, European ministers have decided.
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