EU Intervention Stocks

Published 21 October 14

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 and SMP and had also been extended to cheese.

In the first 7 weeks of the scheme 17,390 tonnes of butter have been offered into the scheme, 841 tonnes from the UK. The majority of offers have come from the Netherlands and Ireland.

A total of 10,132 tonnes of SMP have been offered into PSA. Two-thirds of these offers have come from Denmark.

PSA for cheese was repealed on 23 September due to a disproportionate surge in offers from cheese producing countries not traditionally exporting significant quantities of cheese to Russia. In the 18 days that the scheme was open 100,804 tonnes of cheese were offered. The majority of the offers came from Italy.

PSA for butter and SMP is due to remain open until 31st December 2014.

  tonnes
  Butter SMP Cheese
week commencing UK EU UK EU UK EU
01/09/2014 0 0 0 0 0 0
08/09/2014 0 4,654 0 500 0 15,502
15/09/2014 427 4,171 0 3,842 0 84,963
22/09/2014 120 2,998 0 1,275 0 339
29/09/2014 40 2,207 0 1,983 closed closed
06/10/2014 148 2,182 0 2,284 - -
13/10/2014 106 1,178 4 248 - -

Figures reflect quantities offered to PSA.

 

The PSA rates for butter, SMP and Cheese and summarised below:

  Fixed storage cost Daily rate
  €/tonne €/tonne
Butter 18.93 0.28
SMP 8.86 0.16
Cheese 15.57 0.40

 PSA stocks