Brussels, 28/09/2010 (Agence Europe) - On Monday 27 September, the European Commission presented European agriculture ministers with the most recent quarterly report on the milk and milk products market. This report illustrates that there has been constant improvement in the situation throughout the second half of 2009 and first half of 2010, with average prices (when they leave the farm) ranging from €0.25/kg in the middle of 2009 to just over €0.30 /kg.
According to Dacian Cioloº, the European commissioner for agriculture, Community and world prices have now been maintained at “relatively high” prices despite the seasonal increase in EU and US milk production. Production is currently falling (the normal seasonal phenomenon) in the northern hemisphere but the quantities produced per month are above corresponding months last year. Fifteen EU member states have seen their production increase during the first seven months of 2010 (more than +25% in the Netherlands and Cyprus, and between 1.5 and 2% in Ireland, Denmark, Luxembourg and Austria, which are experiencing the highest rises). Surplus milk is mainly used for consumption and cheese. The production of milk powder and butter is falling.
Elsewhere in the EU, the main producer prices remain largely higher than intervention levels and range from 129% for cheddar to 160% for butter. Demand is robust on both the domestic and export markets. Following a continued rise from May 2009 to November 2009, prices stabilised during the first quarter of 2010 to around 28.5 c/kg, in contrast to seasonal trends. They then began a month on rise to reach an average Community price of 30 c/kg in July.
For the “quota year” (April 2009-March 2010), official communications from member states confirm a 7% under utilisation of quotas for the EU27. According to the figures received, three member states appear to have gone above their milk quotas - the Netherlands, Denmark and Cyprus. Finally, the Commission explains that: butter stocks are practically empty; there are still around 190,000 tonnes of skimmed milk powder in public storage; the campaign for butter purchasing and milk intervention ended on 31 August 2007, without anything entering into storage; Community exports are increasing for many products, mainly because of high prices on the world market and currency exchange rates that are generally favourable in comparison to the dollar. (L.C./transl.fl)