EU Intervention Stocks

Published 27 August 15

Intervention

The current intervention campaign will be extended 3 months to 31 December 2015, subject to approval by the European Parliament and Council. This 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. A new intervention campaign will then open on 1 January 2016, with volume limits reset. The new campaign will run until 30 September 2016.

SMP was offered into the current intervention scheme for the first time during the week beginning 13 July. So far 8,859 tonnes have been put forward, with 1,048 tonnes of this being offered by the UK.

No butter has been offered into the scheme.

Cumulative product offered into public intervention (tonnes)

 

Butter

SMP

 

UK

EU

UK

EU

6 Jul-15

0

0

0

0

13 Jul-15

0

0

0

197

20 Jul-15

0

0

0

1,176

27 Jul-15

0

0

96

2,766

3 Aug-15

0

0

528

4,342

10 Aug-15

0

0

1,048

6,608

17 Aug-15

0

0

1,048

8,859

Source: MMOIntervention 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 will remain open until to the end of February 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 and SMP and was temporarily extended to cheese.

During June 15,267 tonnes of butter were offered into PSA and 4,121 tonnes were removed. At the end of June EU butter stocks under the PSA scheme totalled 74,955 tonnes. 2,049 tonnes of UK butter were added and 3 tonnes removed during June, leaving 3,266 tonnes in storage at the end of the month.

SMP stocks at the end of June totalled 17,632 tonnes. During June 5,793 tonnes of SMP were offered into PSA and 2,833 tonnes were removed. No SMP from the UK remained in PSA at the end of June.

PSA for cheese was repealed on 23 September 2014 due to a disproportionate surge in offers from cheese producing countries not traditionally exporting significant quantities of cheese to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. At the end of June16,619 tonnes remained in storage under the scheme.

Cumulative PSA stock levels (tonnes)

 

Butter

SMP

 

UK

EU

UK

EU

September 14

587

12,061

0

6,281

October 14

739

18,835

80

13,060

November 14

695

19,567

0

13,878

December 14

550

20,471

0

16,003

January 15

390

22,203

0

16,547

 February 15

310

34,981

0

16,350

 March 15

108

38,956

 0

15,571

 April 15

413

49,956

 0

14,274

May 15

1,220

63,810

0

 14,671

 June 15

3,266

74,955

 0

 17,632

                                                                                                                                                         Source: MMO

PSA stocks