January 16, 2009
EU to restart dairy export subsidies
The EU will next week restart export subsidies for dairy products to help producers deal with declining prices.
The European Commission said Thursday (Jan 15) it would also buy up extra dairy products on the EU market from March to support prices.
The moves should help stabilise the dairy market after severe price drops in recent months, said EU Agriculture Commissioner Mariann Fischer Boel.
The EU stopped paying export refunds for dairy products in June 2007 when prices surged. However, the union said it now needs to subsidies EU exporters to help them compete with rivals worldwide.
Prior to this decision, dairy farmers in France and Germany have demanded EU assistance for months.
