July 27, 2015

 

France urges EU to raise dairy prices

 

 

France will push for an increase in milk market intervention prices at a European Union council of farm ministers on September 7, French Agriculture Minister Stephane Le Foll told Reuters last Friday.

 

The meeting was requested by France, which is facing protests from its dairy and livestock farmers.

 

The removal of 30-year-old milk quotas, while expected to create growth opportunities for some dairy farmers, is also expected to raise concerns from others: /contents/04-01-2015/819acba7-e6ba-421f-acb8-341411602fbd-a181.html

 

Intervention prices designed to tackle excess supply of butter and milk powder are still in place, but have been repeatedly reduced in EU farm reforms. They are now too low to stimulate buying.

 

In France the price of milk powder is 2,475 euros (US$2,716) per tonne. In comparison, the EU intervention price is 1,747 euros (US$1,917).

 

Global dairy prices fell to a twelve-and-a-half-year low two weeks ago, with Chinese buying dropping off dramatically after it built up excess supplies of milk powder last year just as its economy began to slow.

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