The European Commission (EC) yesterday announced the opening of Private Storage Aid for butter, skimmed milk powder (SMP) and certain cheeses to ease the effects of Russia’s food imports embargo, which has hit the European dairy sector hard and quick, lsm.lv reports.
Dacian Diolos, the EU Commissioner for Agriculture and Rural Development said that “price signals on the European dairy market show that the Russian ban is starting to hit this sector. In a number of Member States export earnings are being lost and new outlets need to be found. The sector needs time and help to adapt.”
The targeted market support emergency measure ensures temporary storage (from 90 to 210 days) for butter and skimmed milk powder, the cost of which is financed by the EU under its Common Agricultural Policy (CAP). Because cheeses of many varieties were a significant part of dairy exports to Russia, the EC is considering extending similar measures for cheese products too.
EU dairy exports to Russia last year were worth €2.3 billion, notably in the form of cheese: €1.0 bn, but also for food preparations: €0.47 bn; butter-butteroil: €0.14 bn; fresh milk products: €0.10 bn; finished products: €0.09 bn; SMP: 0.07 bn; and whey powder: €0.03 bn; 25 Member States exported cheese to Russia in 2013, but the main EU cheese exporters to Russia are the Netherlands, Lithuania, Finland, Poland, Denmark, Germany, Italy, France and Latvia.
The Baltic states and Finland are considered to be the top exporters of fresh milk products to Russia. Pekka Pessonen, who heads the European organization of farmers and agricultural cooperatives COPA-COGECA, explained that there would be likely two waves of impact on the milk sector.
“First there will have to be a reduction of volume of fresh milk product. That will have its price. Then there will be the second wave, as part of this fresh milk gets diverted toward producing cheeses, milk powders and similar goods. That means there will soon be a glut in other product category supplies,” the COPA-COGECA general secretary told Latvian Radio.
Source: Latviannews.lv
http://www.latviannews.lv/business/5871/