- (Photo: Lis Lak Risager)
Butter bought for storage with EU subsidies to prevent prices falling below a target level under the CAP. Before CAP reforms in the nineties, the EU paid dairies for stocking butter that could not be sold on the open EU market. The stocks were then dumped on the world market or sold to biscuit factories at very low prices.
The EU may still intervene in agricultural markets with a view to influencing food prices.
See Agricultural storage.