UK puts milk powder into intervention for the first time this year

The UK became the 5th country, alongside the Netherlands, Latvia, Germany and Poland to use intervention this year.

In the week beginning May 1, 2017, UK manufacturers accounted for the majority of volumes placed in intervention, with 1,132t of the 1,989t SMP added to stocks.

Latvia and the Netherlands were the only other contributors during the week.

A total of 6,554t of powder has been added to intervention stocks so far in 2017, bringing the overall total held by the Commission to over 356,000t.

ICOS recently highlighted that the value of SMP compared to butter has fallen from 70pc over a five-year average to 45pc.

It says the overhang of 350,000t from 2015-16 represents approximately 17pc of annual SMP trade and is 1.6pc of annual EU milk production.

Weak SMP returns have a knock on effect for other products such as Casein and FFMP, it says.

Source: Independent


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