Archive: Private Storage Aid opens and is extended to cheese

Published 5 September 14

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In response to the threat of market disruption resulting from the loss of the Russian export market for dairy products, the European Commission has implemented some short term market support measures, which come into force from today (5 Sept 2014). These include the opening of Private Storage Aid (PSA) for butter and SMP, and the extension of the scheme to cover certain cheese due to the significance of the impact on cheese markets.

The temporary PSA scheme for cheese applies to all product categories (including Cheddar) with the exception of fresh cheeses which are not suitable for storage. A maximum volume of 155,000 tonnes of cheese will be accepted into PSA.

The rates of aid for butter SMP and cheese are summarised below:

 

Fixed   storage cost
  (€/per tonne)

Daily   rate
  (€/per tonne)

Butter

18.93

0.28

SMP

8.86

0.16

Cheese

15.57

0.40

Source: EU Official Journal

In addition to these short-term measures, the Commission has committed to providing an additional €30m for promotion programmes starting in 2015. This is to support the need to create potential new sales outlets for products affected by the Russian ban. As these schemes are co-funded, this change is likely to mean an additional €60m for promotion measures.