Dairy sector to receive emergency EU funding following Russian trade ban

The European Union will use agricultural funds to help EU producers store butter, Skimmed Milk Powder (SMP) and cheese, to help diminish the impact of the Russian ban on EU food imports, the Commission announced on Thursday (28 August).

Earlier this month, Russia banned the import of certain foods and drinks originating from the European Union as a response to Western sanctions over Ukraine’s crisis. The European Commission is using a Common Agricultural Policy measure called Private Storage Aid to help finance the cost of the three to seven months temporary storage of butter, SMP, and several types of cheese.

However, the Commission has not specified the amount it intends to disburse to the dairy industry.

EU Agricultural Commissioner Dacian Cioloș said in a statement that various member countries experienced losses in the dairy market, and the demand for new storage has outlets increased. He also said that the European Commission is ready to act pre-emptively to stabilise the market.

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