The European Commission could be set to approve an Aids to Private Storage (APS) scheme of up to €30 million for dairy produce as part of its touted €80 million aid package, AgriLand understands.

Broken into storage for skim milk powder (SMP), butter and cheese, the dairy package would comprise storage for a total of 330,000t of dairy produce, according to market sources.

This storage would range in length from two months up to seven months, it is believed, for dairy produce across the union.

This would be broken into:
  • SMP – 90,000t, over a three to seven-month period, worth €6 million;
  • Butter – 140,000t, over a three to seven-month period, worth €14 million;
  • Cheese – 100,000t, over a two to seven-month period, worth €10 million.

It is also understood that private storage aid facilities will be put in place for beef steaks and lamb also.

The APS is understood to be part of a commission aid package for the European agricultural sector in light of the disruption brought on by Covid-19.

What does this mean for Irish dairy?

It is understood that, for SMP and butter, the APS tool will be operated on a “first come, first serve” basis.

This is good news for Irish dairy, with Ireland’s pasture-based system currently nearing peak production over the coming weeks.

Cheese will be facilitated in a slightly different manner. It is believed that cheddar will be accepted under the scheme alongside other European cheeses, with Ireland looking to be in line for a 5% allocation of the APS scheme on the grounds of producing approximately 5% of the EU’s cheese.

It is expected that this will translate into storage for about 5,000t of cheddar.

While industry sources, as well as farm organisation leaders, have welcomed the touted APS supports, they have expressed misgivings over the size of the funding package – cautioning that such a figure will be “ineffective” in tackling the Covid-19 impact.