A tender procedure was automatically triggered on 24^th May when volumes of SMP entering public intervention exceeded 218,000 tonnes. The ceiling at the fixed price had been doubled earlier in the year from 109,000 tonnes to 218,000 tonnes. Commissioner Hogan responded quickly by announcing that the ceiling will be extended again to 350,000 tonnes.

The tender procedure was activated in mid-April when volumes exceeded 109,000 tonnes. At the time, the Commission vowed to run the tender responsibly so as to not to depress prices. A sensible approach will again be required until the legislation is enacted to increase the ceiling to 350,000 tonnes.

Outlined below is a breakdown of Irish and EU SMP entering intervention, with over 281,000 tonnes sold into public ownership since the start of the year. This is approximately 17.5% of total EU SMP production in 2015, and approximately 2% of the EU’s annual milk production.

Of note, AHDB carried out an analysis of EMMO data recently, which found that the three countries who have produced the most extra milk (2014 when compared to 2015), the Netherlands, Germany and Ireland, are not the countries who have the most product in storage. Combined, these three countries have 16% of their extra milk in PSA or intervention. Meanwhile, Belgium has 86% of their extra milk and France has 68% of their extra milk in PSA or intervention.

Source: EMMO

By Eamonn Farrell

Agri-Food Policy Executive