SMP volumes hurtling towards new intervention ceiling

Published 16 May 16

The volume limit for SMP offers into intervention at the fixed price could be reached within a month, if powder continues to enter at its current rate.

The volume ceiling was raised last month to 218k tonnes, but the average daily quantities being put forward have also increased going into the spring flush. More than 2k tonnes per day were offered on average during the first week of May, taking the scheme’s total to 160k tonnes*.

If the limit is reached, SMP offers could become subject to tender again, as they were briefly in April before the volume limit was officially raised. This could put more downward pressure on dairy prices, as the fixed intervention price “floor” of around £1,300/tonne (€1,698/tonne) will no longer be guaranteed.

Intervention 16May16

*Total volume of SMP offered at the fixed price during the 2016 scheme. Volumes offered via the tendering process between 1-19 April are not included as they will not be counted towards the fixed price volume limit of 218k tonnes.