US to boost dairy subsidies

The US Congress is moving to boost its controversial dairy subsidies amid record low prices.

Vermont US Senator Bernie Sanders has won another US$350 million for dairy in a spending bill passed by the Senate.

Sanders said dairy farmers across the US are suffering from the lowest milk prices in four decades, down 41 percent, causing losses of US$100 or US$200 per dairy cow per month.

The USDA increased dairy price supports in July by US$243 million, after reactivating a key dairy export programme that several countries criticised. The US, in return, argued that it is needed to combat rising EU supports.

The US dairy subsidies were criticised as having the strong potential to distort the market.