No more subsidies for exports of dairy products

In line with a recommendation by the EU Commission, the EU has decided to stop subsidising exports of butter and cheese. Exports subsidies would be reduced to zero, but would continue to exist in an administrative sense. Subsidies for milk powder have also been discarded recently. Last year, EUR 1,14 billion was spent on export subsidies for dairy products. Hungarian manufacturers will be effected very adversely by the decision as Hungarian cheese is sold primarily in foreign markets. Experts say that subsidising has been discarded as a result of a world-wide increase in the price of dairy products.