SMP, butter intervention up in EU

The decision by the European Commission to double the intervention ceilings on skimmed milk powder (SMP) and butter was welcomed by UK industry association Dairy UK. The ceilings on SMP will be increased to 218,000 tonnes and to 100,000 tonnes on butter respectively, as was announced by Commissioner Hogan at a recent Agricultural Council meeting.

Commenting on the decision, Dairy UK chairman Dr David Dobbin says, “Dairy UK has consistently highlighted the important role that intervention can play in the current crisis especially during this Spring’s peak production period. With intervention currently filling up quickly, Commissioner Hogan’s proposal to double the intervention ceiling on SMP and butter is very much welcomed.

“It is essential that there is an effective floor in the market and an outlet for short term surpluses. This will help avoid even greater downward pressure on milk prices in the current global over supply situation. We are happy that the Commission has listened.”