Intervention buying in has resumed since late March, with a total of 2669 tonnes have been offered and purchased into intervention in the three weeks to 16th April, coming from Lithuania, Germany, the Netherlands and Poland, the only contributors thus far. A further 1,100 tonnes is reported to have been taken in this week (a far cry from the weekly quantities seen in early 2016).
While these newly bought in quantities are far more modest than the weekly amounts seen in early 2016, they come to join the 350,161 tonnes purchased during the 2014-16 period that remains in stock and continues to overhang the market.
The EU Commission has reiterated its view that product will only be sold out of intervention “at the right price”.
Ornua PPI unchanged for March
The Ornua PPI, which reflects returns for the mix of product traded by Ornua on behalf of its member co-ops for that month, remains unchanged for March compared to February. According to Ornua, this reflects lower SMP and butter price returns, combined with improved Cheddar and whey prices. Allowing for a processing cost of 6.5c/l, they tell us, this would be equivalent to a farmgate milk price of 29.8c/l + VAT.