Wednesday, 21 October 2020
By Kat Jack
Just over 10k tonnes of butter was removed from the EU Private Storage Aid (PSA) scheme September, up from the 2k tonnes removed in August. Around 66k tonnes of butter was entered under the scheme earlier this year, of which 53.5k tonnes remained in storage as of September.
The uplift seen in butter removals may in part be due to the regulations on PSA that state that butter must be stored for a minimum of 90 days to qualify. Butter entered into storage in June could not have been removed before September. However, market dynamics likely also played a part. The EU wholesale butter price rose in September as high cream values reduced churning, which could have increased demand for stored product.
The removals mainly came from The Netherlands and Ireland, who also put the highest volumes into store. The UK has a much smaller part of the butter PSA; 45 of its 1,695 tonnes of PSA butter were removed in September.
The other dairy PSA products were removed at a comparatively stable pace. A little under 6k tonnes of cheese left the scheme in September, in line with August figures. Meanwhile just under 1k tonnes of SMP were removed, which sits between the July and August volumes.
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