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Wednesday, 18 July 2012

Discussions of measures for the milk market

During the course of the last Council meeting on Agriculture, the deteriorating situation of the market of milk and dairy products in the EU has been again discussed. This discussion follows the former request of the Polish and Lithuanian delegations, when these called the Commission for market measures.  The Commission has given an evaluation of the situation of the market of milk.
Some member states have supported the request by Poland and Lithuania to the Commission for  a temporary restoration of export refunds, and an increase in the current reference and intervention prices of butter and skimmed milk powder.
Other member states, while acknowledging the situation described by Poland and Lithuania, took the view, along with the Commission, that measures were not needed now or would not be effective. They would like the Commission to continue monitoring the situation in the milk and dairy market.
In its report on the situation of the milk and dairy market during the first months of this year, the Commission noted that the current decrease in the milk price was linked to several factors including the global increase in milk production and the seasonal nature of the production. It also noted that this decrease in prices had a greater effect in some member states with a specific situation and structural problems in this sector.
However, the Commission said it was still closely following the evolution of the milk market. On the basis of its evaluation of the situation, the Commission would return to this matter at a later Council meeting if necessary. It was ready to activate appropriate measures when it considered that there was a need.

Source: Council of the EU