Annual Dairy Report 2008
Milk production
and output of dairy products in the EU-27 is expected to increase in
2008 as a result of a higher overall milk production quota and growing
domestic consumption of dairy products. European dairy farmers face
continued reduction of farm-gate prices for milk and increasing input
costs. EU-external exports in 2008 of all dairy products except whole
dry milk are expected to decrease due to higher competition from other
exporters and the EU’s reduced competitiveness. Milk production and
output of dairy products is forecast to increase in 2009 but in a slower
rate than in 2008. To support its dairy industry the European Commission
may re-introduce export refunds in 2009 to make EU products more
competitive on the world market.
GAIN
Report E48116
(October
2008)
Fisher-Boel refuses to reconsider
agreement on soft landing of dairy quota
On March 23, 2009, barely three months
after approving the Health Check (HC), a number of EU MS, led by
Germany, called upon the European Council to re-open the dairy chapter
of the HC; notably to postpone the quota expansion for the soft landing
of the quota system. Commissioner Fisher-Boel refused, calling it
misleading the farmers. The Dairy Mancom on March 19 accepted 6,665MT of
butter under its first butter intervention tender, after the 30,000MT
fixed intervention storage program had filled in just two days. By March
15, 58,891MT of SMP also entered into the 109,000MT fixed SMP
intervention program. Export subsidies have not been raised since
February 2009.
GAIN Report E49031 (March 2009)
EU
agrees on two percent milk production quota expansion for 2008/09
On March 17, 2008, the European Council
agreed on a two percent dairy quota increase for 2008/09, in response to
tight world dairy markets in 2007. Decreasing dairy prices in 2008 are,
however, likely to make the European Commission act cautiously in its
upcoming Health Check debate on the soft landing for the milk quota regime
in 2015.
The EC approved a so-called "mini-package" of
amendments to various dairy market regulations. The changes mainly include
harmonization of definitions for dairy products between EU member states,
mainly for butter and drinking milk. The amendment also adopts Codex
Alimentarius standards for protein content for Skimmed Milk Powder (SMP).
This dairy "mini-package" is expected to somewhat decrease butter surplus
on the EU market and consequently lead to decreased EU budgetary spending
on dairy. It is however too early to make any speculation on the ultimate
impact on EU dairy PSD's.
GAIN
Report E47016 (March 2007)
EU market for Whey
derivatives
This report describes the production, consumption
and trade of dried dairy products in the EU with emphasis on the whey
derivatives; sweet whey powder, demineralized whey, delactosed whey, whey
protein concentrates (WPCs), whey protein isolates (WPIs), and lactose. It
is generally anticipated that the EU will increasingly have a deficit of
milk proteins. Opportunities for the U.S. dairy sector lay in particular
in the export of WPCs with the higher protein levels, such as WPC 80. A
future WTO agreement that lowers tariffs on whey derivatives should
increase U.S. exports to the EU.
GAIN
Report E36135 (October 2006)
- An archive of EU
and Member State reports is available at
http://www.fas.usda.gov/scriptsw/attacherep/default.asp.
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