The European Commission announced on Friday 16 December that only 40 tonnes of the 22,000 tonnes of skimmed milk powder available from public stocks had been returned to the market.
The Commission opened a call for tenders for the release of a small quantity of skimmed milk powder held in public intervention stocks (see EUROPE 11675). To test market reaction, the quantity made available was limited to 22,150 tonnes, representing only 6% of the total volume of powdered milk stored and withdrawn from the market.
The EU ultimately accepted bids for a mere 40 tonnes in the first sales. The minimum agreed price is €215.10 per 100kg. This is higher than the current EU average price for skimmed milk powder of €201 per 100kg. The Commission says that, in total, bids offering different prices were received under this first tender for the release of 19,706 tonnes. Out of all the offers received, only those set at the minimum price of €215 per 100kg were deemed acceptable and they happened to concern only 40 tonnes.
“The Commission will act with appropriate caution and the tender process will be under constant reassessment to prevent any unnecessary disruption. Yesterday’s decision shows that selling at all costs was never an option for the Commission and that the maintenance of market balance and price recovery remained its main objectives”, said Agriculture Commissioner Phil Hogan.
A second tender for the sale of the remaining quantity has been opened, with 3 January 2017 as the deadline for submitting offers. The move to release this skimmed milk powder reflects the encouraging signs of recovery being seen on the European milk market, with an increase of about 16% of the average price paid to producers in the last 4 months, the Commission notes. (Original version in French by Lionel Changeur)