Raised intervention volume limits made official

Published 19 April 16

The volume limits for SMP and butter to enter intervention at a fixed price will be officially raised tomorrow (20 April), following publication of the official EU regulations. The ceiling for SMP will rise from 109k tonnes to 218k tonnes and for butter it be lifted from 60k tonnes to 100k tonnes.

SMP has only been able to enter intervention through a tendering process since 1 April, after its original volume ceiling was reached. Any volumes bought in under the tendering process will not be counted towards the new limit and the deadline for the submission of tenders is today (19 April).

The increased volume ceilings should restore the “floor” in the market that fixed intervention prices provide. However, it remains to be seen how quickly the scheme will fill as EU milk production reaches its spring peak over the coming weeks.