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As dairy pundits debate how wise it is for the European Commission to start selling off SMP intervention stocks, The Dealer has been keeping a close eye on the volumes in storage.
Surprise: the latest figures show that over 11,000t of SMP have already left European warehouses so far this year. Some 2,224t were released in October alone, of which 23t in Ireland.
With the first tender to sell any intervention stocks under the current scheme not yet concluded, The Dealer immediately suspected shady dealings – a black market? Fraudulent speculation rings?
Not at all; it turns out that product was simply not good enough. A European Commission spokesperson assured The Dealer that none of the powder released this year was sold.
“The SMP enters into stocks under a conditional takeover, pending on the necessary controls. It may be that some quantities are finally not accepted and therefore reported as de-stocked,” the spokesperson said.
With rejections representing more than 3% of volumes entering intervention so far this year, The Dealer wonders whether European processors set aside their less-than-top-notch SMP lots for intervention, or Commission inspectors are extremely picky. Either way, bidders for the volumes about to be de-stocked can be confident that they will buy only the finest stuff.
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