In the second tender for skimmed milk powder currently held in public storage, the European Commission, with the backing of the member states, decided not to accept any of the offers received.
Some 21,963 tonnes of skimmed milk powder were put up for sale, (equivalent to the quantity put into public storage before 1 November 2015, minus the 40 tonnes returned to the market in the first tender in December 2016) (see EUROPE 11692) in nine EU countries (Belgium, Latvia, Poland, Ireland, France, United Kingdom, Finland, Lithuania and Germany).
Offers were received in eight countries for a total of 11,914 tonnes (19,706 tonnes in December’s tender). The prices offered ranged from €165.1 per 100 kilogrammes (kg) to €196.1 per 100kg.
The Commission proposed that these offers be refused as the prices offered were too far from the prevailing market price and from the minimum selling price set at the previous tender: - the public intervention buying-in price is €169.8/100kg; - the latest average powdered milk price for food products in the EU market is €210/100kg (compared to €201/100kg in December); - the minimum price set at the previous tender was €215.1/100kg.
It is believed that member state experts were unanimous in their support for the Commission proposal and that their view was that the Commission was exercising caution, thereby avoiding market disruption, reassuring markets and not endangering price recovery. The Commission hopes for higher offers in the next tender, the third, which will take place in two weeks’ time (deadline for offers: 17 January). (Original version in French by Lionel Changeur)