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Minister calls on US to drop dairy subsidies

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Sun, 22 Nov 2009 3:49p.m.
Trade Minister Tim Groser is calling on the US to follow the European Union's lead and cut dairy subsides, but Federated Farms does not believe it will happen.

The US justified its re-introduction of export subsidies after the Europeans did it, and Mr Groser says Washington should now remove them.

Federated Farmers spokesperson Lachlan McKenzie says the political mood in the US means it is unlikely they will go, and says the Asian market is a better bet.

Dairy prices have rebounded from recent lows, allowing the European Union to ditch its subsides.

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