Intervention volume ceilings raised following EU meeting

Published 14 March 16

The European Commission is to raise the volume limits for the dairy intervention schemes, as part of a package of measures announced after today’s 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 was not confirmed at today’s meeting.