The average price for EU skimmed milk powder (SMP) has continued an upward trend and is now €173/100kg. This is the first time it has moved above intervention price since September 2017.

There has been a significant increase in SMP markets, with prices 20% higher in comparison to last year.

Intervention stocks

It comes as 95% of the SMP placed in public storage has been sold and returned to the market.

Following the dairy crisis of 2015, 380,000t of SMP was placed in intervention.

The most recent sale saw 80,000t returned to the market, leaving just 22,000t in storage.

Vindicated

European Commissioner for Agriculture Phil Hogan said: “This proves that the EU Commission strategy to prudently manage the markets was the right course of action.

"We have successfully maintained market balance and secured farmers' incomes, without weighing on the market, as many had predicted.”

Bids at the auction also reflected further market recovery, with a minimum price of €155/100kg in comparison with a minimum price of €141/100kg at the last sale in December.

The next sale is due to take place on 24 January.

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Over 80,000t of SMP sold from intervention