The European Commission is set to offer private storage aid (PSA) for 330,000t of dairy products and 61,000t of beef and lamb, the Irish Farmers Journal can reveal. The final details of the European Commission’s aid package for agriculture are being finalised this morning in Brussels but the Irish Farmers Journal understands the total package will be in the region of €76m.
On the dairy side, it’s expected the European Commission will provide €30m in funding for the private storage of up to 330,000t of butter, cheese and skimmed milk powder (SMP). This will take the form of:
€6m for the private storage of 90,000t of SMP for a maximum 210 days.€14m for the private storage of 140,000t of butter for a maximum 210 days.€10m for the private storage of 100,000t of cheese for a maximum 210 days.Quotas will be assigned to each country for cheese storage based on the size of their cheese output. Germany, France and Italy will account for the lion’s share of this private storage capacity but it’s understood Ireland will receive about 5,000t of private storage aid for cheddar.
Spot prices for EU butter and SMP actually rose slightly this week
Dairy industry sources say the scheme is better than had been first hoped and will help co-ops get through the current crisis. Spot prices for EU butter and SMP actually rose slightly this week with the market finding a new floor just above intervention.
Beef and lamb
On the meat side of this aid package, the European Commission is expected to offer €46m in private storage funding for 61,000t of steak meat and lamb. This will be split as follows:
€26m for the private storage of 25,000t of beef steaks for a maximum of 150 days.€20m for the private storage of 36,000t of lamb for a maximum of 150 days.Private storage is less effective as a support for meat, particularly steak meat, as freezing it in storage devalues the product immediately by 25% to 50%.
However, currently steak meat is impossible to sell and many beef factories are freezing production anyway with the steak meat of older cattle being used in manufacturing beef which is mainly steak and burgers.
Currently steakmeat is impossible to sell
“The consequences of the coronavirus crisis are increasingly being felt in the agri-food sector and this is why we have decided to take swift action, in addition to the measures already taken since the outbreak of the crisis,” said European Commissioner for Agriculture Janusz Wojciechowski.
“The measures proposed are, in the present state of market developments, intended to send a signal aimed at stabilising markets and are considered to be the most appropriate for providing stability to future prices and production and thus stable food supplies and food security,” he added.
The European Commission is set to offer private storage aid (PSA) for 330,000t of dairy products and 61,000t of beef and lamb, the Irish Farmers Journal can reveal. The final details of the European Commission’s aid package for agriculture are being finalised this morning in Brussels but the Irish Farmers Journal understands the total package will be in the region of €76m.
On the dairy side, it’s expected the European Commission will provide €30m in funding for the private storage of up to 330,000t of butter, cheese and skimmed milk powder (SMP). This will take the form of:
€6m for the private storage of 90,000t of SMP for a maximum 210 days.€14m for the private storage of 140,000t of butter for a maximum 210 days.€10m for the private storage of 100,000t of cheese for a maximum 210 days.Quotas will be assigned to each country for cheese storage based on the size of their cheese output. Germany, France and Italy will account for the lion’s share of this private storage capacity but it’s understood Ireland will receive about 5,000t of private storage aid for cheddar.
Spot prices for EU butter and SMP actually rose slightly this week
Dairy industry sources say the scheme is better than had been first hoped and will help co-ops get through the current crisis. Spot prices for EU butter and SMP actually rose slightly this week with the market finding a new floor just above intervention.
Beef and lamb
On the meat side of this aid package, the European Commission is expected to offer €46m in private storage funding for 61,000t of steak meat and lamb. This will be split as follows:
€26m for the private storage of 25,000t of beef steaks for a maximum of 150 days.€20m for the private storage of 36,000t of lamb for a maximum of 150 days.Private storage is less effective as a support for meat, particularly steak meat, as freezing it in storage devalues the product immediately by 25% to 50%.
However, currently steak meat is impossible to sell and many beef factories are freezing production anyway with the steak meat of older cattle being used in manufacturing beef which is mainly steak and burgers.
Currently steakmeat is impossible to sell
“The consequences of the coronavirus crisis are increasingly being felt in the agri-food sector and this is why we have decided to take swift action, in addition to the measures already taken since the outbreak of the crisis,” said European Commissioner for Agriculture Janusz Wojciechowski.
“The measures proposed are, in the present state of market developments, intended to send a signal aimed at stabilising markets and are considered to be the most appropriate for providing stability to future prices and production and thus stable food supplies and food security,” he added.
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