EU to Conduct Its Version of Dairy Diversion Program
The European Union (EU) will attempt its own version of a dairy diversion program, hoping to reduce milk production for the last three months of 2016. The EU has budgeted $168 million to the effort, and has targeted another $223 million to place additional skim milk powder into storage and isolate from the market.
The diversion program was proposed earlier this summer, and it took until now to finalize all the details. A similar program was tried in the United States in the mid-80s, and it proved to be only a temporary fix.
According to the Dairy Food and Market Analyst weekly newsletter, EU farmers are being offered $6.32/cwt to reduce milk shipments.