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Published 19June 2009
At the EU Management Committee on 18 June, export subsidies were increased, for SMP by 9% and for WMP by 13%, although cheese and butter were unchanged. For bulk butter and SMP, refunds are set by tender at a higher subsidy. For butter, 2,841 tonnes were accepted at a maximum of €700/tonne; for butteroil, 1,141 tonnes were accepted at €845/tonne; and for SMP, 3,694 tonnes were accepted at €258/tonne (up €18/t). These volumes are higher than the last tender but well below the amounts given refunds in April and May, indicating a fall in overseas demand and uncertainty with the introduction of US export subsidies. There is also the possibility that some product given refunds in April and May has not yet found a buyer.
The only internal subsidies that currently exist are for butter sales to charities, for PSA and for school milk.
Export refunds were reintroduced for all dairy products on 22 January 2009 after a gap of 18 months, reflecting the dramatic fall in world market prices.
Prior to the 22 January 2009, changes to export refunds for butter and cheese had been 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. Between June 2006 and July 2007, EU subsidies, both internal and for export, had been 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. Tenders were suspended from 12 September 2007 and the scheme will finish on 1 July 2009.
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
'Common' EU Subsidies (Euro/100kg) |
||||||||
Management Committee dates
|
Butter |
SMP |
Skim |
WMP |
Cheddar |
|||
Food Manufacture |
Export refund (82%) |
Animal Feed |
Export Refund |
For Casein |
Export Refund |
Export Refund |
||
Traced |
Untraced | |||||||
20-May-09 |
BS |
BS |
55.00 |
0.00 |
19.00 |
0.00 |
29.00 |
22.00 |
04-JUN-09 |
BS |
BS |
65.00 |
0.00 |
21.00 |
0.00 |
31.00 |
22.00 |
18-JUN-09 |
BS |
BS |
65.00 |
0.00 |
22.80 |
0.00 |
35.00 |
22.00 |
19-JUN-08 |
BS |
BS |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Notes: BS Bids suspended
Source: DIN, Mancom
