EU Intervention Stocks

Published 25 July 18

Intervention

Due to the current high stock levels, the Commission have implemented a temporary change to the fixed buying-in price for SMP, reducing it to zero for the 2018 window (1 March - 30 September). The effect of this change is it allows the Commission to limit (or avoid) any further stock accumulation. 

Typically, the Intervention scheme allows the European Commission to buy in 60,000 tonnes of butter and 109,000 tonnes of SMP between 1 March and 30 September each year, at set prices of €2,217/tonne and €1,698/tonne respectively.

The aim of the policy is to provide a minimum floor in the market during times of low pricing. After the volume limit is reached, product can be offered into intervention through a tendering process if proposed by the Commission. 

SMP offered into public intervention (tonnes)*

cumulative total

  UK EU
2015 total 1,048

40,280

2016 total
(fixed price and tender)
5,270  334,551
2017 total  1,818

30,647

CURRENT STOCKS
(to end Jun 18)
7,732 307,508

 *Totals may not match MMO figures due to rounding. Please note these figures are subject to revisions. Source: MMO

Intervention Sales

The European Commission began to offer SMP intervention stock up for sale from December 2016, via a tendering process.

At the most recent tender on 17 July, offers were made of the purchase of 27,768 tonnes. At the minimum sale price of €1,125/tonne set by the Commission, a total of 2,408 tonnes were sold. The Commission currently include all stocks which have entered into public storage up to 1 June 2016. The total volumes available for the 28 August tender is estimated at 118,907 tonnes. 

 Tender date  Volume sold (tonnes) Price (€/tonne) Volume available for next tender (tonnes)
21-Mar-17 0 - 21,740
18-Apr-17 0 - 21,740
16-May-17 0 - 21,740
20-Jun-17 100 1,850 21,640
18-Jul-17 0 - 21,640
19-Sep-17 0 - 21,640
17-Oct-17 40 1,441 21,600
21-Nov-17 40 1,390 21,560
11-Dec-17 0 - 21,560
15-Jan-18 1,564 1,190

99,416

20-Feb-18 4,337 1,100

95,079

20-Mar-18 4,127 1,050

90,952

17-Apr-18 24,066 1,051

115,112

15-May-18 41,958 1,155

144,847

19-Jun-18 23,532 1,195

121,315

17-Jul-18 2,408 1,125

118,907

Source: MMO

*Totals may not match MMO figures due to rounding. Please note these figures are subject to revisions.

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. 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.  

PSA was extended to remain open until 30 September 2016, due to ongoing market difficulties. The butter and cheese schemes closed on this date but PSA for SMP was extended further and closed on 28 February 2017. 

 PSA stock movement (tonnes)*
 Jun-18
    Butter SMP Cheese
UK in 0 0 0
  out 0 0 0
  balance 0 0 0
EU in 0 0 0
  out 0 0 0
  balance 0 0 0

 Source: MMO

*Totals may not match MMO figures due to rounding. Please note these figures are subject to revisions.