March 2, 2009
European Commission "intervention" seen to ease EU farmgate milk prices
The European Commission's market intervention in EU milk production is seen to prevent huge drop in farmgate prices and make it competitive in the world market, according to the US Department of Agriculture.
The intervention, which started in January this year, includes export subsidies, private storage aid and intervention procurement starting this month. The level of intervention prices and export subsidies depends strongly on the euro/US$ exchange rate.
The USDA reports that EU-27 milk production will likely peak in mid 2009 and decline in the second half of the year.
For more of the USDA report, please click here.
