What the new Private Storage Aid measures are all about

Like public intervention, Private Storage Aid (PSA) is a traditional market management measure to reduce oversupply on the EU market and thereby help prices to recover.

The key difference is that with Private Storage Aid the Commission only helps cover the costs of storage and only for a limited period (normally 3-6 months), after which the product (which still belongs to the operator) comes back on to the market.

This measure is most suitable for products with a seasonal cycle, as it provides a temporary easing of market pressure and a number of months for producers to adjust production. In the dairy sector, PSA is available for butter and SMP and, agreed in the 2013 CAP reform, cheeses with a Geographical Indication.

What are the changes made to the new PSA scheme, and why will these extra conditions make a difference?

The aid rate for skimmed milk powder is increased by over 100% and the storage period is fixed for a year.

In relation to the new PSA scheme for cheese, any unused allocations will be available for redistribution after three months to those Member States which wish to make greater use of the scheme.

In relation to the PSA scheme for pigmeat, to ensure the success of the scheme some of the low-value cuts have been including. In this light, the scheme will be extended to fresh lard, responding to the proposal that some of the so-called ‘fifth quarter cuts’ should be included.

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