EU Intervention Stocks

Published 29 July 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, due to remain open until 30 September 2016. The European Commission recently announced it intends to extend the scheme for SMP until the end of February 2017, but this hasn't yet been officially adopted. 

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 allowed a total of 100,000 tonnes of butter and 218,000 tonnes of SMP to enter at fixed prices. 

On 24 May, the new 218k tonne volume ceiling was reached for SMP, and offers became subject to a tendering procedure once again. The ceiling for SMP has now been raised to 350,000 tonnes and buying-in has resumed at the fixed price. 

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

Cumulative product offered into public intervention (tonnes)*
  SMP
  UK EU
2015 TOTAL 1,048 40,280
2016 campaign - buying in at fixed price
04-Jan-16 1,135 6,359
11-Jan-16 1,159 11,848
18-Jan-16 1,159 16,796
25-Jan-16 1,159 22,545
01-Feb-16 1,159 29,841
08-Feb-16 1,159 37,340
15-Feb-16 1,159 44,673
22-Feb-16 1,303 54,553
29-Feb-16 1,339 63,580
07-Mar-16 1,339 73,427
14-Mar-16 1,339 87,177
21-Mar-16 1,577 100,152
 28-31-Mar-16†  2,072 109,000
 20-24-Apr-16 2,364  127,688
 25-Apr-16 2,598  143,587
02-May-16 3,270  160,766
09-May-16 3,604  182,783
16-May-16 3,670  208,956
23-24-May-16ӿ 3,670  218,001
30-Jun-16 3,670  220,517
04-Jul-16 3,670  229,366
11-Jul-16 3,670  235,979
18-Jul-16 3,670  242,229
2016 buying in via tender 
Tender of 19 Apr-16 1,076  27,038
Tender of 07 Jun-16 1,468 63,399
Tender of 21 Jun-16 1,468 78,526

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

ӿ Increased volume limit for SMP to enter intervention at a fixed price was reached on 24 May 2016, offers from 25 May - 29 June 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 was extended, to remain open until 30 September 2016. The Commission recently announced a further extension for SMP until the end of February 2017, but this hasn't yet been officially adopted. 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 June, 14,759 tonnes of butter were offered into PSA and 7,928 tonnes were removed, bringing total EU butter stocks to 99,379 tonnes. June stocks of UK butter in PSA were 3,581 tonnes at the end of the month.

SMP PSA stocks at the end of June totalled 39,261 tonnes. During the month 6,442 tonnes of SMP were offered into PSA and 937 tonnes were removed. 

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 June, stocks within the scheme were at 24,444 tonnes, including 4,245 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

- -

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 34,956 3,418 27,295
Feb-16 1,874 60,093 777 37,014

2,560

29,852

Mar-16 2,190 60,377 446  35,800  2,706  30,018
Apr-16 1,729 79,024 0 32,026 6,480 33,166
May-16 2,386 92,548 0 33,756 4,960 26,779
Jun-16 3,581 99,379 0 39,261 4,245 24,444

                                                                                                                                                      Source: MMO

PSA stocks

*Totals may not match MMO figures due to rounding. 

Please note these figures are subject to revisions.