EU-28 Dairy Intervention Update – Jun ’20
Executive Summary Dairy private storage aid and intervention schemes have been made available to European dairy producers and processors in response to price declines and volatility associated with COVID-19. Highlights through the end of May ’20 include:
- EU private storage aid of butter, skim milk powder and cheese was reopened May 7th and will remain open until Jun 30th. Through the end of May, 5,800 tons of skim milk powder, 36,800 tons of butter and 40,300 tons of cheese have been added to private storage aid. Private storage aid cheese stocks reached a record high level through the end of May ’20, with over 40% of the scheme limit being filled.
- Intervention schemes for skim milk powder and butter were opened at the beginning of Mar ’20 and will run through the end of Sep ’20. Average European skim milk powder and butter prices briefly fell below the intervention trigger price during early May ’20 but rebounded to levels 1.7% and 2.4% above the intervention trigger prices, respectively, as of the end of May ’20.
- Significant quantities of skim milk powder intervention stocks were purchased throughout 2016 however stocks were rapidly withdrawn throughout the second half of 2018 and early months of 2019. Minimal volumes of skim milk powder entered intervention throughout May ’20 while butter intervention stocks have remained empty since 2012.