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DAIRY NEWS EU intervention Program for SMP harmed US Farm Gate Prices : A report

A recent report has shown that EU Skimmed milk Powder intervention program impacted US dairy industry badly. This research involved International Dairy Foods Association (IDFA), US dairy export Council (USDEC) and the National Milk Producers Federation (NMPF).

Authors concluded that the EU program impacted the US dairy industry in three ways. In 2018 and 2019 US dairy industry lost around 2.2 B USD. It was forced to lower milk prices under depressed global SMP prices. The EU support program also artificially inflated its global export market share and thus lower market share for US dairy exporters. SMP exporters and US dairy exporters lost 168 M USD in 2018-19 .

Finally when the EU dumped the stocks of intervention SMP into the global market place then it harmed the US competitiveness in it’s important export markets including south east Asia. In May dairy groups in USA joined to call for an end to the EU intervention program. The EU is continuing with its intervention program and accumulated the equivalent of 16% of global market in government storage.

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