New report solidifies detriment of EU milk dumping


New report solidifies detriment of EU milk dumping

Dairy groups are calling for an end to the European Union’s intervention practices which dump dairy product stockpiles on the international market.

The International Dairy Foods Association, National Milk Producers Federation, and U.S. Dairy Export Council are calling on the U.S. Trade Rep and USDA Secretary to prevent the EU’s milk dumping.

Recent analysis finds the U.S. dairy industry has been harmed by these practices since 2016 which have depressed the global price of skim milk powder. 

The report finds in 2018 and 2019, dairy farm incomes dropped by more than $2.2 billion because of depressed prices and the EU program also caused U.S. dairy exporters to lose $168 million in sales during that period.

The groups say when the EU tripled the ceiling of skim milk powder intervention purchases in 2016, they accumulated the equivalent of 16 percent of the global market in storage.  When prices improved in 2018, stockpiles were released without restriction and adversely harmed prices.

A coalition of dairy organizations from 10 countries including the U.S. has also formed to urge the EU to not repeat these practices.

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