Only France and Lithuania used intervention for a total of 953t of skimmed milk powder (SMP) last week, bringing the weekly volume of product offered into the flagship European market control mechanism under 1,000t for the first time this year.

Uptake remains high for SMP private storage aid, especially the shorter seven-month option available under the scheme.

Both trends are indicative of a growing reluctance by milk processors to part with SMP at the intervention price (equivalent to 20c/l) as the global dairy recovery offers better prospects of selling the product for a higher price on the open market.

Butter and cheese

The quantities of butter and cheese offered into private storage aid have also been on a decreasing trend since June, though this is slower for butter.

The only use of market support measures reported by Irish processors last week was 189t of butter placed under private storage aid.

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