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Monday, February 19, 2018
 Industry Backs Sale of EU Intervention Milk Powder  

By Jane Byrne

The confectionery division of the UK Food and Drink Federation (FDF) has backed the move by the European Commission to open tenders for the sale of intervention skimmed milk powder (SMP) as a way of bolstering raw material supply for the sector.

Martin Turton, executive secretary of the Biscuits, Cakes, Chocolate and Confectionary Sector Group at the FDF told ConfectioneryNews.com that the decision taken at last week’s EU Dairy Management Committee to sell intervention stocks of the commodity until June 1, 2010, will reduce SMP prices.

The EU has agreed to release up to 25,000 tons of butter and some 65,000 tons of skimmed milk powder (SMP) from intervention stocks, on the back of rising dairy prices.

Skimmed milk powder is a significant ingredient in European confectionery manufacture, with companies buying up some 35 per cent of the bloc's SMP production for use in their products.

Demand for dairy produce has surged over the past two months, driving prices for butter and SMP in the EU up by as much as 25 percent, with the market price for SMP moving from €1,900 per ton to €2,300-2,400 per ton in that period.

Since the end of 2009, the confectionery industry has been consistently asking the Commission that intervention stocks be released to help reduce price pressures.

The EU dairy management committee meeting saw a non-opinion issued by member state experts, according to media reports. However, in the absence of a qualified majority either way, the Commission is able to approve the proposal and open up the stocks for release onto the market.

The Commission will announce successful bids on June 3, 2010.

According to Turton, the stock releasing move will enable confectionery and other food manufacturers to operate on a more competitive and flexible basis.

Source: Confectionery News

http://www.confectionerynews.com/The-Big-Picture/Industry-backs-sale-of-EU-intervention-milk-powder/?c=sggPabRs3Dp6JrvjzPq8TA%3D%3D&utm_source=newsletter_daily&utm_medium=email&utm_campaign=Newsletter%2BDaily
 


Posted on Monday, May 24, 2010 (Archive on Monday, May 31, 2010)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org
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