MD_DA100
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MD DA100
EUROPEAN DAIRY MARKET OVERVIEW
	
MADISON, WI.  September 15, 2016 (REPORT 37) 

WESTERN OVERVIEW: 

Late August to early September milk deliveries to dairy 
processors in Germany are reported to be a bit lower than 
expected. Hotter late summer weather is cited. In France, milk 
deliveries for the period are about where expected. Last week, 
final regulations were published in Europe specifying details 
for reducing the milk supply, extending skim milk powder 
intervention, and extending private storage aid. Total funds 
assigned to the milk production reduction program are 150 
million Euros. Producers seeking funds for the three month 
period from October to December 2016 must apply by noon Brussels 
time on September 21. The goal is reducing milk production by 
1.1 million MT. Aid will be fixed at 14 Euros per 100 kg of milk 
production which a producer does not produce, using a defined 
process comparing past production. The minimum volume of cow 
milk delivery reduction that can be covered by an aid 
application is 1500 kg. The maximum volume which can be covered 
is 50% of the reference volume for the chosen three month period 
(e.g. 50% of the milk produced by a farmer between October and 
December 2015). As for the 350 million Euro exceptional 
adjustment program targeting dairy and beef producers through 
programs designed by EU member states, each member state wishing 
to participate has until November 30 to submit to the European 
Commission, outline plans for using the funding. Successful 
member states may top up the funding received by up to 100% from 
the finances of each state. The published regulation also 
extends SMP intervention from September 30 until December 31. In 
2017, intervention will run from January 1 through September 30.

0930c Eric.Graf@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-
news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home