Dáil Éireann Debate, Thursday - 12 July 2018
593. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the formal position Ireland took with respect to the European Commission’s decision for SMP intervention tendering to move to twice a month; and if this is a change for 2018 only. [32206/18]
View answerAs the Deputy is aware, in recent years the EU has accumulated large amounts of public intervention stocks of skimmed milk powder (SMP), which are overhanging the dairy market and providing negative effects on wider dairy markets and market sentiment.
Commission Implementing Regulation (EU) 2016/2080 which initially opened the sale of skimmed milk powder by a tendering procedure provided for two partial invitations to tender per month, except for August and December. However due to a lower than anticipated interest in tenders for the sale of SMP Commission Implementing Regulation (EU) 2017/472 amended Regulation 2016/2080 by reducing the number of periods during which tenders may be submitted to one per month and eliminating the provision for such a period in the month of August.
Recent sales from public intervention stocks of SMP have seen a total of approx 90 000 tonne released to-date in 2018. This is, I believe, a positive step in dealing with these stocks and reflects an overall stabilisation of the market for SMP.
The Commission has decided that as a result of the increased interest from potential buyers of SMP, and the experience gained with the partial invitations to tender thus far in 2018 that it is appropriate to restore the number of periods during which tenders may be submitted and to provide for such a period in the month of August.
This will facilitate and expedite the sale of further SMP stocks, and my Department supported the Commission's efforts in this regard, allowing for two tenders for sale from SMP intervention stock in each month from October 2018, except for August, September and December. This reversion to the original provisions regarding the tenders of the sale of SMP is not limited to 2018 only.
I have previously called on the Commission to remain vigilant in monitoring the market situation and be ready and have contingencies in place in the event of market volatility re-emerging. I am satisfied that this has been the case to-date. My Department will continue to work with our partners in the industry to develop measures which can minimise the effects of price volatility in the future and ensure sustainable growth.
