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French farmers protest milk and meat prices

France wants the European Union to raise the intervention price for milk. While the E.U. has dropped its milk production caps, it has maintained the intervention program which buys-up excess skim milk powder and butter in times of low prices. The EU invention price is $1,698 Euros per metric ton of skim milk powder, the French skim milk powder price is currently $38 Euros below that. The Global Dairy Trade price for skim milk powder is at $1,702 which is 1,550 Euro. French Agriculture Minister Stephane Le Foll tells Reuters they will push for an increase in the intervention price when the EU farm ministers meet on September 7^th.

French farmers have been blocking major roadways around the country in protest of lower milk and meat prices. The farmers say they are being hammered by cheap imports and pressure from grocery store chains. A price war among supermarket chains has been blamed for the plunge in milk prices in the United Kingdom.

The French government has offered a $654 million plan of loans and deferred tax payments but farmers say that is not enough

Mother Nature may help reduce milk production, USDA Dairy Market News says much of Europe is under an intense heat wave and milk production has suffered. Drought conditions are developing in some areas of France which will likely affect forage production.