EU to boost 2008 milk production
According to a recent USDA report, milk production and output of dairy products in the EU is expected to increase in 2008 as a result of a higher overall milk production quota and growing domestic consumption of dairy products.
European dairy farmers face continued reduction of farm-gate prices for milk
and increasing input costs, according to the report. EU-external exports in 2008
of all dairy products except whole dry milk are expected to decrease due to
higher competition from other exporters and the EU’s reduced competitiveness.
Also in 2009, milk production and output of dairy products is forecast
to increase, but at a slower rate than in 2008. The report goes on to say that
in order to support its dairy industry, the European Commission may re-introduce
export refunds in 2009 to make EU products more competitive on the world
market.
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