Proposal for a Council Regulation amending Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products, as regards applicable quantitative limitations for buying-in butter and skimmed milk powder

The milk and milk products sector is experiencing a prolonged period of severe market imbalance. Global demand for milk and milk products has deteriorated in the course of 2015, notably due to the introduction and prolongation of the Russian import ban and the weakening of imports in China (main world importer of dairy products). At the same time milk supply has generally increased in the main exporting regions.

Milk production in the Union is steadily increasing as investments in milk production capacity were made in the Union in view of milk quota expiry and positive medium term prospects on the world market. Milk volumes produced in excess have to be processed into long term storable products such as butter and skimmed milk powder (SMP). Prices of butter and SMP in the Union declined in 2014 and 2015, when skimmed milk powder prices hit the public intervention price. Butter prices are still above the public intervention price but under downward pressure.

In order to help the milk and milk products sector find a new balance under the prevailing severe market situation, and preserve confidence in the effectiveness of intervention mechanisms, it is appropriate to increase the quantitative limitations for buying-in butter and skimmed milk powder at fixed price in the year 2016.

• Primary Source

EUR-Lex: COM(2016)208: Follow the progress of this proposal through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2016:208:FIN

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