EU Intervention Stocks

Published 25 November 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.

Since the scheme started 19,957 tonnes of butter have been offered into the scheme, 841 tonnes from the UK. The majority of offers have come from Ireland and the Netherlands.

A total of 13,727 tonnes of SMP have been offered into PSA since the scheme opened. The majority of these offers have come from Germany.

PSA for cheese was repealed on 23 September due to a disproportionate surge in offers from cheese producing countries not traditionally exporting significant quantities of cheese to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 close on 31 December 2014. It has been proposed that scheme remains open until 28 February 2015. This proposal will be voted on at the EU cereals management committee meeting on 27 November.

A new intervention period for Butter and SMP will open on 1 January 2015 with ceilings being set at 50,000 tonnes and 109,000 tonnes respectively.

 

 

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

84,963

15/09/2014

427

4,171

0

3,842

0

15,502

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

1,211

4

491

-

-

20/10/2014

0

754

76

1,709

-

-

27/10/2014

0

1,079

0

1,183

-

-

03/11/2014

0

422

0

292

-

-

10/11/2014

0

280

0

168

-

-

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