EU Reintroduces Dairy Subsidies

By: AUSBUY

In January 2009 the European Union voted to reintroduce subsidies of up to 50% on its dairy exports. This has resulted in a trade battle between the EU and the USA, and spells trouble for Australian dairy farmers at a time when they can least afford it.

This will lock in lower world dairy prices for EU farmers as well as everyone else and mean Australia's dairy producers cannot hope to compete at this artificially low price with the resultant damage to our export markets.
The USA could appeal this move to the World Trade Organisation, however they will more likely hit back with their own subsidies, leaving Australia restricted in two major markets. All the more reason for Australians to support our Australian owned dairy companies including Bega and Bulla.

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