Export subsidies on whole milk powder have been cut by the European Commission in response to increases in the world market prices for milk powders. The EU dairy management committee is reducing the whole milk powder export refund by 10.5%. This reduces the subsidy from E76 to E68 per 100kg. The reduction means the rate is now 37% lower than it was this time last year. The commission told the dairy management committee that the subsidy was so high that it was allowing EU milk powder exporters to undercut the world market price. The EU price for milk powders is rising because increased demand for cheese is diverting milk supplies from powder manufacture. {{PROVISIONS }}

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