Monday, October 6, 2014

Prices are falling, because this is the … market – Interia

Prices are falling, because this is the … market – Interia

The Minister of Agriculture and Rural Development Marek Sawicki / PAP

The deterioration of the situation in the dairy industry due to a decrease in the prices of milk and dairy products on world markets – explains the Ministry of Agriculture.

The Ministry of Agriculture is answered to the letter of the dairy industry – its representatives have expressed concern about the deteriorating situation on the milk market in connection with the Russian embargo. This is related to m.in the fact that Poland was a major exporter of dairy products to that market – mainly cheese. Reply from the Ministry a few days ago got Polish Chamber of Milk.

The Ministry explained in response that the industry worse financial results are primarily due to the decline in world prices, while in previous years the situation on the dairy products was good.

From the beginning of the year to the third week of September. average selling prices of skimmed milk powder decreased by approx. 30 percent., approx. 24 percent. – Whole milk powder, approx. 30 percent. – Butter in blocks, more than 18 percent. – Butter, confectioner, 25 percent. – Edam cheese (12.80 zł / kg) and approx. 23 percent. – Gouda cheese (12.84 zł / kg).

The purchase price of milk at this time decreased by 15.4 percent. According to the CSO, in August, the average price paid was 128.17 zł per 100 liters. Most paid in Lubuskie – 141,2 zł per 100 liters, the lowest in the province. Lodz – 118.55 for 100 liters. Agricultural Market Agency experts estimate that the price of milk in the coming months will be dropped and at the end of the year will amount to 118-124 zł per 100 liters.

In the month and a half since the introduction of the Russian embargo price of milk powder and butter fell by more than 10 per cent., and cheese of approx. 6 percent. – Admitted resort.

According to the ministry – as written in a letter to the Polish Chamber of Milk – in view of the difficult situation of the industry needs to be more support for this sector of the European Commission. Existing aid instruments in the form of aid for private storage of butter and skimmed milk powder has not led to the stabilization of the prices of these products. The reason is, according to MARD, too low level of the intervention price and for that reason, manufacturers are not interested in selling butter and milk powder in the framework of EU intervention.

Resort assured that Poland is trying to convince the EC to greater support dairy industry by building alliances with other countries that introduced most severely affected by the embargo. He also recalled that at the end of August has requested that the Commission include the abolition of penalties for overproduction of milk.

“However, it should be noted that taking any decision related to further intensify activities under the Common Agricultural Policy requires a majority of Member States” – we read in the letter from the ministry.

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