Fixed buying-in price for SMP reduced to zeroStaff Writer | May 22, 2018
Due to the current high stock levels, the European Commission have implemented a temporary change to the fixed buying-in price for SMP, reducing it to zero for the 2018 window (1 March - 30 September).
Dairy EU intervention stocks
Typically, the Intervention scheme allows the European Commission to buy in 60,000 tonnes of butter and 109,000 tonnes of SMP between 1 March and 30 September each year, at set prices of €2,217/tonne and €1,698/tonne respectively.
The aim of the policy is to provide a minimum floor in the market during times of low pricing.
After the volume limit is reached, product can be offered into intervention through a tendering process if proposed by the Commission. ■