The EU has quashed export refunds for dairy products now that world market prices have begun to strengthen.

Since June, world market prices paid for cheese have increased 40%, and those for butter 80%.

"Such a big increase makes the use of export refunds no longer justified," said European Commissioner Mariann Fischer Boel at a meeting of the EU Agriculture Council last week.

The prices of butter and SMP within Europe are also strengthening and are currently 29% and 23% respectively above their intervention prices.