New Private Storage Aid measures proposed

Published 14 September 15

Details on the EU Aid package are currently being discussed for presentation at the next Council meeting to be held on Thursday 17 September. Further to meetings held on Friday 11 Sept and today (Monday 14 Sept), some details on proposals regarding Private Storage Aid have been revealed.

For PSA, the Commission has proposed the addition of two new PSA schemes to run alongside the current schemes for SMP and butter.  These will cover SMP and Cheese but not butter, as it was felt the butter market has not been as impacted by the market disturbance.

The new PSA proposed for SMP aims to more effectively alleviate pressure on the supply side by removing surplus products from the market for a sufficiently long period to enable the market to recover. If approved the storage period will be longer than under the standard scheme (currently between 3 and 7 months), with higher aid rates compared to the standard scheme.

With the proposed PSA for cheese, it is expected that the scheme will incorporate an allocation total volume per Member State based on respective cheese production.

No details have been revealed on how the direct aid will be allocated among Member States beyond the three alternative methods of splitting the funds according to (a) 2014/15 production levels, (b) loss of export markets as a result of the Russian ban and (c) relative milk price decreases from August 2014 – 2105.

AHDB Dairy will continue to report on the details of the package as they are revealed.