Baltic Nations receive the most benefits from the milk package launched recently by the European Union, at least after analysing the allocation of 350 million euros (out of a total of 500 millions) among the 28 EU Member States, which still include the United Kingdom since it will participate in EU life until Brexit is finalised.
Consulting data published by Clal.it, the specialist dairy web portal, and a calculator, Fieragricola – the international primary sector show scheduled in Verona 31 January- 3 February 2018 – analysed the aid potentially available for 100 kg of milk products, referring to individual allocations in individual countries of the 350 million euros made available by Brussels.
Allocation of funds
If on the budget allocation were considered, Italy would rank sixth among beneficiaries, with funds totalling 20.9 million euros, behind Germany (57.9 millions), France (49.9 millions), United Kingdom (30.2 millions), the Netherlands (22.9 millions) and Poland (22.7 million euros).
Benefits in relation to production
If, on the contrary, we calculate the amount of milk produced in 2015 by each EU Member State and the funds allocated, a clear political choice emerges that ensures more support for the Baltic Republics and Eastern European, probably to help breeders to cope with the closure of the Russian market. The top eight countries in the financial aid rankings for 100 kilograms of milk are Latvia (1.28 €/100 kg), Romania (€ 1.21/100 kg), Bulgaria (1.19 €/100 kg), Estonia (1.15 €/100 kg), Lithuania (€/100 kg), Hungary (0.98 €/100 kg), Czech Republic (0.68 €/100 kg) and Finland (0.44 €/100 kg). Then come Belgium (0.30 €/100 kg), Greece (0.28 €/100 kg), Slovakia (0.25 €/100 kg), Spain and Sweden (0.24 €/100 kg), Poland, Portugal and Slovenia (0.22 €/100 kg).
Behind them, at 0.21 €/100 kg come the United Kingdom, Italy and France, followed by Austria (0.20 €/100 kg) and Germany, Ireland, Cyprus, Luxembourg, the Netherlands and Denmark, all with 0.19 €/100 kg.
In the light of such aid, which can be doubled up by Member States as well as distributed to other sectors in difficulty such as pig farming and fresh produce, what benefit will the market obtain and in what timeframe?
The Milk Package measure that extends the possibility of private storage of skimmed-milk powder (SMP) will also have an impact. EU-28 warehouses (source: Clal.it) as of 31 May 2016 stockpiled 259,450 tonnes of SMP, 39.8% more than in the previous month and an astonishing 1,668.50% more compared to 31 May 2015.
Although the Chinese market has resumed orders, starting off with a trend-based +120.24% for whole milk powder in June 2016, the European Union will have to adjust its course with some firmness.
Milk deliveries in the EU-28 between May 2015 and May 2016 totalled 155 million tonnes, with an upwards trend compared to the same period last year (+32,000 tonnes); exports, on the other hand, suffered a setback: 20 million tonnes of milk equivalent exported between June 2015 and May 2016, a downturn of 33,000 tonnes. Not to mention a decrease of 27.91% in exports of skimmed milk powder, at -27.91%.