Bruxelles, 17/03/2011 (Agence Europe) - According to the European Commission's quarterly report on the market situation, presented on Thursday 17 March to European agricultural ministers, favourable weather conditions have fuelled dynamic demand and attractive milk prices. Milk collection in the EU27 increased by 1.23% in 2010.
On an overall basis in the EU27, the quota year is projected to end with an estimated 6% underuse of milk quotas. The increased milk production has been converted into yoghurt, cheese and other value-added dairy products that experienced an increase in production, in line with demand, while dairy commodities (butter, butter oil and skimmed milk powder) registered low production levels.
The report illustrates that average milk prices paid to producers in 2010 are 15% higher than the average price paid in 2009. EU average prices for dairy products continue to be largely above intervention levels. While cheese prices remained rather stable over the last three months, butter prices increased by 8% and milk powder prices surged.
2010 was a successful year for European exports, especially skimmed milk powder, butter and cheese. Public stocks of butter and skimmed milk powder also fell. (L.C./transl.fl)