EU-28: EU Rescinds SMP Intervention Provisions Preventing Further Build-up

High EU skimmed milk powder (SMP) intervention stocks have been hanging over the EU dairy market for all 2017, without the EU being able to sell any of it. On the contrary, in the last weeks of the 2017 intervention scheme more than 30,000 MT of SMP was bought, increasing EU SMP stocks to 380,000 MT at the end of October, of which 3,800 MT under the 2017 private storage scheme. Given that EU SMP prices are now well below the reference price for intervention, the EU has proactively decided to rescind the yearly 109,000 MT intervention scheme for 2018 agreed in the 2013 CAP agreement and only allow SMP intervention buying under periodic tenders. 

EU-28: EU Rescinds SMP Intervention Provisions Preventing Further Build-up