100,000t sold from SMP intervention in past 4 months

Approximately 100,000t of skimmed milk powder (SMP) have been sold from intervention in the past four months, according to EU Commissioner for Agriculture and Rural Development Phil Hogan.

Speaking to AgriLand on the matter, Commissioner Hogan commented that the process was moving with satisfactory demand.

He explained: “We have moved about 100,000t in the past four months, which is without taking any further product into intervention, and hopefully we’ll be able to sell a bit more between now and the end of the year.

“It’s very satisfactory to see the demand that’s there in third-country markets at the moment. We have recently negotiated a 30,000t quota with Mexico for 2019 and beyond.”

The commissioner referred to the recent EU-Mexican trade agreement, announced in April, which secured a sizeable volume for milk powder exports into the Mexican market – starting with 30,000t from entry into force, rising to 50,000t after five years.

According to the UK Agriculture and Horticulture Development Board (AHDB) today (Wednesday, July 25), as of the end of June, current EU stocks of SMP account for 307,508t.

Recent results in Ornua’s Purchase Price Index (PPI) have reflected somewhat stronger market conditions in the past few months, stabilising in April following a difficult start to 2018 – and rising for May and June indexes.

Source: Ornua

It remains to be seen if such trends will continue for July index results and prices.

CLASSIFIED ADVERTS