The only subsidies that currently exist are for butter sales to charities, for PSA (Private Storage Aid, where butter is put into storage and released during the winter) and for school milk.

There are now no export subsidies on dairy products, with butter and cheese export subsidies set at zero at the management committee of 14 June 2007, reflecting a shortage of supplies both on the world market and in the EU. If the market situation deteriorates export subsidies can, in theory, be reintroduced.

Between June 2006 and July 2007, EU subsidies (both internal and for export) were gradually eliminated.

Export subsidies were set at zero for SMP on 15 June 2006. Export subsidies for WMP and condensed milk were reduced to zero on 25 January 2007.

The subsidy on butter for food manufacturing and concentrated butter was reduced to zero on 26 April 2007, and tenders were suspended from 12 September 2007.

The subsidy on SMP for animal feed was reduced to zero on 19 October 2006 and the skim for casein subsidy was reduced to zero on 10 October 2006.

For more information on export licences please click here.

As part of the EU's export refund system, companies can choose to either accept the 'common' rates set out below, or to enter a tender, which may or may not be accepted depending on market conditions

Notes: * Formula A/B, REJ Bids rejected , BS Bids suspended
Source: DIN, Mancom