More SMP intervention stock on the cards?

Published 21 March 17

Current levels of SMP intervention sit at around 350k tonnes, with only 40 tonnes being sold through the tender process (in mid-Dec).

The window is open for another 109k tonnes to enter the scheme if sellers are struggling to get a higher price. Wholesale prices have been reducing since the start of the year, heading towards the intervention level. Average prices at the start of the year were around €2,100/tonne and have fallen €230 to €1,870/tonne by 12 March. Prices now sit around €170 above the intervention price.

Intervention graph 21.03.17

In the past, extra milk produced over the flush has often been turned into SMP, depending on capacity and demand for other products. Therefore, we could be in a position where more stock could be being placed into intervention over the spring.

According to Eucolait, the EU Commission has changed the tender process for anyone looking to buy intervention stock from twice a month to monthly. However, with the Commission under no time pressure to sell stock, it is unlikely this stock will shift until past the peak.