Update on EU dairy stocks

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. It will remain open until to the end of February 2016.

During June 15,267 tonnes of butter were offered into PSA and 4,121 tonnes were removed. At the end of June EU butter stocks under the PSA scheme totalled 74,955 tonnes. 2,049 tonnes of UK butter were added and 3 tonnes removed during June, leaving 3,266 tonnes in storage at the end of the month.

Skimmed Milk Powder (SMP) stocks at the end of June totalled 17,632 tonnes. During June 5,793 tonnes of SMP were offered into PSA and 2,833 tonnes were removed. No SMP from the UK remained in PSA at the end of June.

PSA for cheese was repealed on 23 September 2014 due to a disproportionate surge in offers from cheese producing countries not traditionally exporting significant quantities of cheese to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. In the 18 days that the scheme was open 100,803 tonnes of cheese were offered. At the end of June 16,619 tonnes remained in storage under the scheme.

The current intervention campaign will be extended 3 months to 31 December 2015, subject to approval by the European Parliament and Council. This allows for 50,000 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. A new intervention campaign will then open on 1 January 2016, with volume limits reset. The new campaign will run until 30 September 2016. SMP was offered into the current intervention scheme for the first time in July. By 27 July, a total of 2,670 tonnes had been put forward. No UK SMP has been offered so far.

No butter has been offered.