Trevor Slegers recently published a column in Cheese Market News explaining the problems the EU is facing as the longest participant in the industry. Here’s an excerpt:
A little over a year ago, I wrote an article about the longest participant (in terms of stocks sitting in storage) in the dairy industry — the European Union (EU) and their intervention scheme. The amount of skim milk powder (SMP) held in the intervention scheme justified the statement and more than 12 months later, the same holds true.
The good news? The totals are decreasing with July, August and September figures below year-ago levels, which is the first time that can be said in this context. The bad news? Despite the minimal decreases, the total number of stocks still exceeds 380,000 metric tons, which continues to loom over the market like a dark cloud.