Berlin  - The European Union plans to resume programs to protect dairy farmers, an EU official said Thursday, the day before one of the world's major farm-products fairs opens for business in the German capital of Berlin.

Mariann Fischer Boel, commissioner for agriculture, said, "The abruptness of the fall in the price of milk in the last few months has surprised a lot of people." The EU ceased subsidizing exports a year and a half ago.

She said Brussels proposed to buy up butter, cheese and milk powder stocks to stabilize prices, then export the products. From March to the end of August, it would buy
30,000 tons of butter and 109,000 tons of skimmed milk power at an "intervention" price.

International Green Week, the annual fair in Berlin, is a major meeting place for world farm-industry ministers and executives.

Key guests attended the official launch party Thursday evening.

From Friday, 1,600 exhibitors from more than 50 countries were to display produce at Berlin's exhibition centre through January 25.

As many as 400,000 visitors are expected to view more than 100,000 culinary specialities from around the world in the booths.

The Netherlands, this year's partner country, receives a special focus, while newcomer Kyrgyzstan is exhibiting alongside Green Week veterans such as Italy's wine, cheese and olive oil producers.

Russian Prime Minister Vladimir Putin was set to attend Friday and use the occasion to hold talks with German Chancellor Angela Merkel.

The world recession has pulled the rug from under prices for commodities such as milk.

EU is under pressure from militant farmers who demand what they term fair prices for their milk. For 10 days last year German dairy farmers poured milk down drains rather than sell it.

Currently, milk often sells at the farm gate in Germany for less than 0.30 euros per litre.

Past EU plans to fill warehouses with surplus milk powder and butter have always angered other dairy export nations, since the stockpiles push down prices for farmers right around the globe.

Oxfam, the aid agency, warned Thursday that the subsidies could ruin farmers in developing nations.

Fischer Boel said at the opening party that EU officials were reviewing "more efficient" ways of making direct subsidy payments to European farmers from 2013 when the next EU budget period starts.

"Until 2013 there won't be any more agricultural reforms," she added. (dpa)