Earlier this week, EU farm group Copa Cogeca called on EU leaders to extend protective measures further, and to source extra funding to support farmers affected by the trade embargo.

Farmers across Europe have launched protests, claiming they are not receiving necessary support as the effects of the measures become more pronounced, and alleging that retailers are seeking to capitalise on the fallout from the ongoing diplomatic row by lowering prices paid to their suppliers.

On Thursday, the EU Commission announced that market support measures would be extended to the dairy sector, having previously only covered horticulture producers, whose produce was being harvested when the ban came into force earlier this month, and who would not have time or storage capacity to seek alternative markets.  

The Commission said it will open Private Storage Aid for butter, Skimmed Milk Powder (SMP) and certain cheeses in order to alleviate the impact of restrictions on imports into Russia. Russia's Prime Minister announced on 7^th August that imports of food and drink from the EU, United States, Canada and other countries that have introduced sanctions over the country's actions in the Ukraine would be banned for a year.

The protective measures will last until the end of the year, the Commission said.

EU Agriculture Commissioner Dacian Cioloș said, "Price signals on the European dairy market show that the Russian ban is starting to hit this sector. In a number of Member States export earnings are being lost and new outlets need to be found.

"The European dairy sector needs time and help to adapt so I am announcing today targeted market support, focusing on milk powder, butter and exported cheeses If needed, further measures will follow."

The Commissioner continued, "In the coming days I will also present to Member States and the European Parliament a first full analysis of the short and medium term impact of this Russian ban on all major European agri-food sectors, together with an overview of the policy options. Again, my message to EU producers today is clear: Where material risks of market destabilisation appear, I will continue to use the new CAP to act pre-emptively to stabilise the market."

EU exports of cheeses to Russia were worth €1 billion in 2013. Dairy exports last year were worth €2.3 billion.

In the UK, protest group Farmers For Action has called on the government to take measures to support dairy producers, including redistributing dairy products through food banks. FFA has said it is consulting with members and has not ruled out escalating protests.