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EU Halts Export Subsidies
EU - EU dairy prices have started increasing, which has stopped intervention storage of butter and skimmed milk powder (SMP). A further improvement in dairy prices led the European Commission to halt all export subsidies, except for butter, at its Management Committee meeting in early November.
Since the summer of 2009, EU dairy commodity prices have increased in response to higher world market prices and a decrease in EU dairy supplies. Butter prices rapidly increased in reply to a temporary market shortage in October 2009, which led the EU dairy trade association Eucolait to request that the European Commission (EC) starts selling intervention butter into the market again.
While the EC has resisted this call, the improved EU dairy market situation, has prompted the EC to halt all export subsidies for dairy exports, except for butter, which was reduced to €14.50/100kg in two steps from €65.00/100kg.
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