April 28, 2004

EU Dairy Prices Up
 

The price of dairy produce in the European Union is increasing amid tight global supplies and strong demand.

Dairy Australia market analyst Michael Harvey said while the short-term market outlook remained positive, EU export prices were likely to be more volatile in the next few months.

He said the EU had recently introduced tendering for export subsidies in an attempt to cut payments.

As a result, subsidy rates for butter and SMP had fallen 6-14 per cent.