EU Intervention Stocks

Published 27 April 16

Intervention

The 2015 intervention campaign was extended by three months in light of ongoing market difficulties to run until 31 December 2015. A new campaign then immediately opened on 1 January 2016 with the volume limits reset. This is due to remain open until 30 September 2016.

The scheme allows for 60,000 tonnes of butter and 109,000 tonnes of SMP to be bought at set intervention prices of €2,217/tonne and €1,698/tonne respectively. After the ceiling is reached, product can then only be offered into intervention through a tendering process rather than at the set prices. SMP volumes reached the original ceiling on 31 March 2016 and SMP offers between 1 April and 19 April were subject to tendering. From 20 April, the European Commission officially raised the volume ceilings for the 2016 campaign, due to ongoing market difficulties. The new limits allow a total of 100,000 tonnes of butter and 218,000 tonnes of SMP to enter at fixed prices. 

SMP started entering the 2015 intervention campaign in July, with volumes offered reaching 40,280 tonnes by the time it closed in December. Since the 2016 campaign opened, 109,001* tonnes have been offered at a fixed price, up to 31 March. 2,072 tonnes of this were put forward by the UK. Between 1 and 19 April, a further 22,623 tonnes were offered under the tendering process, with 1,076 tonnes of this coming from the UK. 

No butter has been offered into intervention in 2015/16.

Cumulative product offered into public intervention (tonnes)*

 

Butter

SMP

 

UK

EU

UK

EU

2015 TOTAL 0 0 1,048 40,280
2016 campaign - volume limits reset
4 Jan-16 0 0 1,135 6,359
11 Jan-16 0 0 1,159 11,848
18 Jan-16 0 0 1,159 16,796
25 Jan-16 0 0 1,159 22,545
1 Feb-16 0 0 1,159 29,841
8 Feb-16 0 0 1,159 37,340
15 Feb-16 0 0 1,159 44,673
22 Feb-16 0 0 1,303 54,553
29 Feb-16 0 0 1,339 63,580
7 Mar-16 0 0 1,339 73,427
14 Mar-16 0 0 1,339 87,177
21 Mar-16 0 0 1,577 100,152
 28-31 Mar-16†   0 0 2,072 109,001
Tender 1-19 Apr-16 0 0 3,148 131,624

Source: MMO 

Intervention 2015

† Original volume limit for SMP to enter intervention at a fixed price was reached on 31 March 2016, offers from 1-19 April were subject to a tendering process

PSA

The European Commission re-opened Private Storage Aid (PSA) on 5 September 2014 in response to the threat of market disruption due to the loss of the Russian export market. The scheme has been extended and is due to remain open until 30 September 2016. For information on weekly offers into PSA please click here.

PSA is a payment made by the European Commission to processors in return for keeping products in storage and off the market for an agreed period of time. The scheme covers butter, SMP and cheese.

Additional PSA schemes for SMP and cheese were agreed last year as part of the Aid Package agreed by the Commission on 7 September 2015. The new SMP scheme will allow manufacturers to store product for one year and will pay a higher rate of aid. For cheese, the scheme will allow for up to 100,000 tonnes of cheese to be put into storage at subsidised rates, distributed among Member States according to cheese production levels.

During March, 11,678 tonnes of butter were offered into PSA and 8,211 tonnes were removed, bringing total EU butter stocks to 63,560 tonnes. March stocks of UK butter in PSA were 2,190 tonnes at the end of the month, with 404 tonnes added and 88 tonnes removed. 

SMP stocks at the end of March totalled 35,808 tonnes. During the month 2,439 tonnes of SMP were offered into PSA and 3,645 tonnes were removed. The UK had 446 tonnes of SMP in PSA at the end of March. 

The initial allocation of PSA for cheese was repealed on 23 September 2014 due to a disproportionate surge in offers from cheese producing countries not traditionally exporting significant quantities of cheese to Russia. In the 18 days that the scheme was open 100,803 tonnes of cheese were offered.

However, the new cheese PSA scheme with volume limits for Member States is now in use. The deadline for applications for Member States to fill their initial volume allocations passed on 15 January 2016. Leftover volumes have now been reallocated to Member States wanting to make further use of the scheme. At the end of March, stocks within the scheme were at 29,292 tonnes, including 2,706 tonnes of UK cheese. 

Cumulative PSA stock levels (tonnes)*

 

Butter

SMP

 

Cheese (subject to national limits)

 

UK

EU

UK

EU

UK

EU

Sep-14

587

12,061

0

6,281

 -  -

Oct-14

739

18,835

80

13,060

- -

Nov-14

695

19,567

0

13,878

- -

Dec-14

550

20,471

0

16,003

- -

Jan-15

390

22,203

0

16,547

- -

 Feb-15

310

34,981

0

16,350

- -

 Mar-15

108

38,956

 0

15,571

- -

 Apr-15

413

49,956

 0

14,274

- -

May-15

1,220

63,810

0

 14,671

- -

 Jun-15

3,266

74,955

 0

 17,632

- -

Jul-15

4,865

89,745

240

23,472

- -

Aug-15

4,998

99,467

505

24,127

- -

Sep-15

5,292

88,628

990

26,310

- -

Oct-15

4,223

74,220

990

27,682

3,824 13,930

Nov-15

3,787

60,470

1,015

28,625

3,824 28,116
 Dec-15 2,890 51,142 1,015 32,935 3,851 26,970
Jan-16 2,081 55,918 1,015 33,956 3,418 26,465
Feb-16 1,874 60,093 777 37,014

2,560

29,022

Mar-16 2,190 63,560 446  35,808  2,706  29,292

                                                                                                                                                      Source: MMO

PSA stocks

*Totals may not match MMO figures due to rounding. 

Please note these figures are subject to revisions.