Commissioner Hogan has defended the decision to accelerate sales of skimmed milk powder (SMP) from EU intervention stocks to over 40,000t this month. The EU released the stocks last week at €1,150/t, while EU SMP markets are currently returning €1,400t.
'Hypocrisy'
Asked whether this was sending a negative market signal, Commissioner Hogan denounced the “hypocrisy” of those criticising the move.
“On the one hand, processors are asking to know when it is going to be sold, because they’re saying that there is an overhang in the market. In my view they may be using this as an excuse in order to lower prices because we are not releasing products in any way that is damaging the market,” he said in an interview with the Irish Farmers Journal.
Commissioner Hogan added that European SMP exports were at record levels so far this year, after rising significantly in the past two years. Demand is strong enough to absorb both new product intervention stockpiles, he argued.
This should not be used as an excuse by processors to reduce their price
“We are at pains to explain to farmers that this should not be used as an excuse by processors to reduce their price, because we’re doing it in a way that is not in away way displacing export opportunities for fresh milk,” he said.
He added that despite some pessimistic predictions, milk prices had not dropped beyond “a seasonal reduction” this spring.
CAP budget, China, Mercosur: read the full interview with Commissioner Hogan in this week’s Irish Farmers Journal and hear it on Wednesday’s weekly podcast. Read more
Monday dairy markets: SMP intervention sale another positive signal
Commissioner Hogan has defended the decision to accelerate sales of skimmed milk powder (SMP) from EU intervention stocks to over 40,000t this month. The EU released the stocks last week at €1,150/t, while EU SMP markets are currently returning €1,400t.
'Hypocrisy'
Asked whether this was sending a negative market signal, Commissioner Hogan denounced the “hypocrisy” of those criticising the move.
“On the one hand, processors are asking to know when it is going to be sold, because they’re saying that there is an overhang in the market. In my view they may be using this as an excuse in order to lower prices because we are not releasing products in any way that is damaging the market,” he said in an interview with the Irish Farmers Journal.
Commissioner Hogan added that European SMP exports were at record levels so far this year, after rising significantly in the past two years. Demand is strong enough to absorb both new product intervention stockpiles, he argued.
This should not be used as an excuse by processors to reduce their price
“We are at pains to explain to farmers that this should not be used as an excuse by processors to reduce their price, because we’re doing it in a way that is not in away way displacing export opportunities for fresh milk,” he said.
He added that despite some pessimistic predictions, milk prices had not dropped beyond “a seasonal reduction” this spring.
CAP budget, China, Mercosur: read the full interview with Commissioner Hogan in this week’s Irish Farmers Journal and hear it on Wednesday’s weekly podcast. Read more
Monday dairy markets: SMP intervention sale another positive signal
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