It is understood Member States have again agreed not to sell any skimmed milk powder (SMP) out of public intervention this week after the Commission recommended to refuse all the offers on the count that they were well below prevailing market prices. By Ciaran Moran.
According to market sources, the highest bid offered for the fouth tender of 21,962t was €1,850/t.
Last month, offers were received for a total of 7 490 tonnes were also rejected, the prices offered ranged from €1,550/t to €1,900/t, well below the minimum price set at the first tender on 15 December of €2150.1/t.
The decision was made to put on sale the skimmed milk powder that entered into public intervention before 1 November 2015 (some 22,000t) started on November 25.
The quantities offered for sale represent roughly 6% of the total 354,000t which went into public storage in 2015 and 2016.
The move to release these first volumes reflects encouraging signs of recovery on the European milk market. Following a steady slow-down, no further quantities of skimmed milk powder have been put into public intervention since September 2016.
The Commission has said that decisions to refuse all offers and wait for better bids underlines once more that selling at any cost has never been an option for the Commission.
Instead, it has said maintaining market balance and price recovery remain its main objectives.