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Dairy Intervention Volumes Raised After EU Meeting

15 March 2016

EU - The European Commission is to raise the volume limits for the dairy intervention schemes, as part of a package of measures announced after a farm council meeting.

The volume of SMP that can enter intervention at the set price will double to 218k tonnes and the limit for butter will increase from 60k tonnes to 100k tonnes.

This aims to help support the fixed intervention price, given that the SMP scheme has been rapidly approaching its original volume limit.

The Commission also announced it will allow dairy producer organisations, interbranch organisations and co-operatives to set up voluntary supply management agreements. This is to be permitted on a temporary basis, given the continuing oversupply of the market.

In addition, the Commission said it would consider allowing Member States to provide temporary state aid to their farmers, but this not confirmed at today’s meeting.

Commenting on the decision, Dairy UK Chairman Dr David Dobbin said: “Dairy UK has consistently highlighted the important role that intervention can play in the current crisis especially during this Spring’s peak production period.

"With intervention currently filling up quickly, Commissioner Hogan’s proposal to double the intervention ceiling on SMP and butter is very much welcomed.

“It is essential that there is an effective floor in the market and an outlet for short term surpluses. This will help avoid even greater downward pressure on milk prices in the current global over supply situation. We are happy that the Commission has listened.”

TheCattleSite News Desk

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