EU Intervention Stocks

Published 7 February 17

This page will now be updated monthly rather than weekly, while prices remain above intervention level. Weekly published figures for intervention and PSA can be found on the Milk Market Observatory website.

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 have now closed but PSA for SMP remains open, as the Commission announced a further SMP extension until 28 February 2017. 

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 allows manufacturers to store product for one year and pays a higher rate of aid. For cheese, the new scheme allowed 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. This was after the initial cheese PSA scheme was repealed on 23 September 2014 due to a disproportionate surge in offers from cheese producing countries not traditionally exporting significant quantities of cheese to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. 

During December, no butter was offered into PSA and 11,796 tonnes were removed, bringing total EU PSA butter stocks to 26,875 tonnes. December stocks of UK butter in PSA were 845 tonnes at the end of the month.

SMP PSA stocks at the end of December totalled 68,335 tonnes. During the month 3,473 tonnes of SMP were offered into PSA and 8,313 tonnes were removed. 

During December, no cheese was offered into PSA and 1,722 tonnes were removed. At the end of the month, stocks were at 15,057 tonnes, including 45 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

3,824 13,930

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

29,806

Mar-16 2,190 60,377 446  35,800  2,706  29,972
Apr-16 1,729 79,024 0 32,026 6,480 33,096
May-16 2,386 92,548 0 33,756 4,960 28,524
Jun-16 3,581 99,980 0 39,224 4,245 26,203
Jul-16 4,276 102,043 545 52,410 2,946 24,541
Aug-16 3,884 96,946 828 64,819 1,500 22,587
Sep-16 3,752 82,207 1,096 75,096 668 19,229
Oct-16 2,609 61,110 716 74,778 182 18,104
Nov-16 1,318 38,670 704 73,175 68 16,779
Dec-16 845 26,875 687 68,335 45 15,057

 Source: MMOPSA stocks

Intervention

The 2015 intervention scheme was extended by three months in light of ongoing market difficulties to run until 31 December 2015. A new scheme then immediately opened on 1 January 2016 with the volume limits reset, due to remain open until 30 September 2016. The European Commission has extended this for SMP, keeping it open until 31 December 2016. It will then open a new 2017 scheme for SMP, which will be available from 1 January - 30 September 2017.

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 for 2016 and buying-in resumed at the fixed price. 

No butter has been offered into intervention in 2015-17.

SMP offered into public intervention (tonnes)*
  UK EU
2015 total 1,048 40,280
2016 total (fixed price and tender) 5,270  334,551
2017 total to date (29 Jan) 0 0

Source: MMO

The European Commission began to offer SMP intervention stock up for sale from December 2016, via a tendering process. So far 40 tonnes have been sold.  

 Tender date  Volume sold (tonnes) Price (€/tonne) Volume available for next tender (tonnes)
 13-Dec-16  40  2,151 21,962 
 03-Jan-17  0  - 21,962 
 17-Jan-17  0  - 21,962 


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

*Totals may not match MMO figures due to rounding.

Please note these figures are subject to revisions.