EU Intervention Stocks

Published 29 January 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 50,000 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 started entering the 2015 intervention campaign in July, with volumes reaching 40,280 tonnes by the time it closed in December. During the first three weeks of the 2016 scheme 16,786 tonnes have already been put forward.

No butter has been offered 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 11,868
18 Jan-16 0 0 1,159 16,786

Source: MMO 

Intervention 2015

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. It was due to remain open until to the end of February 2016 but the butter and SMP schemes have recently been extended 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 December 4,420 tonnes of butter were offered into PSA and 9,974 tonnes were removed, bringing total EU butter stocks to 54,916 tonnes. November stocks of UK butter in PSA were 2,890 tonnes, with 88 tonnes added and 985 tonnes removed. 

SMP stocks at the end of December totalled 30,536 tonnes. During the month 4,612 tonnes of SMP were offered into PSA and 2,701 tonnes were removed.

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 UK, Ireland, Italy, Sweden and Lithuania have all made applications filling their permitted volume limits. By the end of December, stocks within the scheme were at 16,256 tonnes, including 3,851 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

27,683

3,824 13,303

Nov-15

3,787

60,470

1,015

28,625

3,824 16,101
 Dec-15 2,890 54,916 1,015 30,536 3,851 16,256

                                                                                                                                                      Source: MMO

PSA stocks

 Please note these figures are subject to revisions.