Just as we’re beginning to relax about the outlook for dairy prices Phil Clarke reports that the European Union is inviting tenders for the skim milk powder and butter it stcok-piled when prices fell.
Currently there are some 76,000t of butter and 257,000t of powder in EU stores. First tenders have to be submitted by traders by 1 June, with a decision by the management committee on 3 June (two weeks today).
The EU insists it will fix the price and volume to be released “taking into account the market situation”.
Stockpiles eventually get sold and unless it’s done very carefully it will depress the price. In whch case the emasre measure designed to soften the blow of falling prices will delay the return to higher ones.