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EU Dairy Intervention Ceilings Officially Raised

20 April 2016

EU - The volume limits for Skimmed Milk Powder (SMP) and butter to enter intervention at a fixed price will be officially raised tomorrow (20 April), following publication of the official EU regulations, according to UK levy board AHDB Dairy.

The ceiling for SMP will rise from 109k tonnes to 218k tonnes and for butter it be lifted from 60k tonnes to 100k tonnes.

SMP has only been able to enter intervention through a tendering process since 1 April, after its original volume ceiling was reached.

Any volumes bought in under the tendering process will not be counted towards the new limit and the deadline for the submission of tenders is today (19 April).

The increased volume ceilings should restore the “floor” in the market that fixed intervention prices provide. However, it remains to be seen how quickly the scheme will fill as EU milk production reaches its spring peak over the coming weeks.

TheCattleSite News Desk

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