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Fixed buying-in price for SMP reduced to zero

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Staff 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).
SMP reduced to zero
Dairy   EU intervention stocks
The effect of this change is it allows the Commission to limit (or avoid) any further stock accumulation.

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.