EU-28 Intervention Stocks Update – Jul ’18
Executive Summary Market tools including private storage aid and intervention schemes have been made available to European dairy producers and processors since the announcement of the Russian dairy import ban in Sep ’14. Highlights through the first half of 2018 include:
- EU private storage aid stocks of butter, cheese and skim milk powder have been completed drawn down following the closures of the schemes in late 2016 and early 2017. Private storage aid of butter and cheese has been closed since the end of Sep ’16 while the skim milk powder private storage aid scheme was closed at the end of Feb ’17.
- Similarly to private storage aid, the intervention scheme for butter closed at the end of Sep ’16. A new skim milk powder intervention campaign was opened at the beginning of Mar ’18, however purchases will be made through a tendering procedure on a case-by-case basis and without a fixed trigger price. Such a process will allow the European Commission to limit or avoid any further stock accumulation. No skim milk powder volumes have been sold into the new intervention scheme through the end of Jun ’18.
- Significant quantities of skim milk powder intervention stocks purchased throughout 2016 continue to hang over international powder markets. The European Commission began to offer skim milk powder intervention stocks up for sale during Dec ’16 via a tendering process, with 21 additional tendering processes taking place since. Minimal amounts of SMP intervention stocks were sold out of intervention until the April – June tenders, when nearly 90,000 tons of product were sold. Total combined EU-28 intervention and private storage aid skim milk powder stocks are estimated to have declined 29.1% from the Sep ’16 highs but remain significant overall.