After Poland became the first country to use intervention in 2017 earlier this month, Germany and Lithuania placed skimmed milk powder (SMP) into the scheme last week, the latest European Commission figures show. Lithuania offered 479t of SMP to intervention and Germany 250t.
The move illustrates the uneven recovery on dairy commodity markets, with butter continuing to attract rising prices while SMP prices are in decline. EU butter prices have stayed above €4,200/t since last October and hit €4,270/t this week.
Meanwhile, the rally observed in SMP prices during the second half of last year has been virtually erased, with EU prices now at €1,790/t – only marginally above the intervention price of €1,698/t.
Fresh offers of SMP into intervention will add to the EU’s 350,000t stockpile accumulated during the past two years’ crisis. Only 40t have been sold since the European Commission began attempts to put intervention stocks back on the market. All recent bids were below the intervention price and were rejected.
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