The Agriculture Commissioner, Mariann Fischer Boel, has recently announced several measures to support the dairy sector which has been hurt by exceptionally low prices for milk, cheese and other products. Marian Fisher Boel stressing the fall in milk prices has said “(…) Now it is time for the European Union to help. Measures introduced in the Health Check will give the dairy sector an important boost, but we need to do something now because the Health Check will only apply from next season.”

The Commission has announced that it will start buying up stocks of dairy products on 1 March and will continue to do so until the end of August. The first 30,000 tonnes of butter will be bought in at a price fixed at 221.75 €/100kg.Intervention for skimmed milk powder is open from 1 March until 31 August 2009 at a price fixed at 169.80 €/100kg up to a maximum quantity 109,000 tonnes.

The Commission will spend 254 million euros of taxpayer’s money in butter and milk.

Mariann Fischer Boel expects "it will be necessary to support the market beyond this limit.” Hence, "Further quantities may be accepted with prices to be fixed through fortnightly tenders.” According to the Commission intervention will be used only briefly to serve as a safety net. The Commission has said that it plans to buy up stocks of dairy products are short term measures however there are fears that such measure will lead to an EU’s butter mountain and milk lakes.

The Management Committee has recently decided to reintroduce export refunds for certain dairy products for the first time since June 2007. Exports of butter, cheese and skimmed milk have declined in the last few months therefore the Commission wants to encourage sales of these products to third countries. According to the Commission EU exporters are not able to compete presently with world market prices.

Hence, the Commission will reactivate export refunds not only for butter and skimmed milk powder but also for whole milk powder and cheese. According to the Commission “The measure will only apply for as long as market conditions so dictate.”

From 22 January, operators have the possibility to submit bids with the assurance of receiving a subsidy. The maximum refund for skimmed milk powder has been set at 200 EUR per tonne and bids were accepted for a total of 5,612 tonnes. The maximum refund for butter has been set at 500 Euros per ton and bids were accepted for 2,299 tonnes. For butteroil, bids were accepted for 80 tonnes at a maximum refund of 580 EUR per tonne.

The EU measures will undermine farmers in developing countries. According to The Times, Elise Ford, Head of Oxfam International's EU office, has said, "With such measures, the European Union is undermining the possibility of finding global solutions to hunger and to make agriculture work for the poor. It can unleash a series of responses from other countries that could be dangerous in the long-term.”