For the first time in living memory the EU now has no subsidies for the export of skim milk powder on to the world market. This follows a new round of subsidy cuts introduced by the Commission at the end of last week, which abolished entirely the 50 euros per tonne (approximately £30) subsidy on skim milk powder. This means EU exporters can now only export if the world price of around $2000 per tonne matches domestic returns within the EU. Export subsidies for whole milk powder were cut for the third time in recent weeks by 9% to 500 euros per tonne (around £300) and those for condensed milk were reduced by 15% to 56.7 euros per tonne. Over the past year this means export subsidies have been cut by 40% for whole milk powder and those for condensed milk by 44%. EU exporters are expressing some concern as world market prices are far from buoyant and competition from other major exporters such as Australia and New Zealand remains fierce. The fear is growing that the EU's share of the world market for these products will decline further. {{M/E CANNED GOODS }}

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