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3. Market Support Measures

EXPORT REFUNDS

Export refunds are subsidies, which may be paid in respect of beef, live cattle, milk and milk products, sugar, cereals, pigmeat, poultry and egg products and certain processed products that are exported outside the EU. The amount of the subsidy, which can vary depending on the destination of the product, is designed to cover the difference between the EU market price and the lower world market prices and to take account of the high input of raw material prices obtained in the European Union. The scheme enables EU exporters to better compete on world markets.

  • An exporter requires an export licence in order to export these products and to apply for export refunds;
  • There are various conditions that apply to licensing and refunds including quantities, time limits, securities, etc. that the exporter must comply with;
  • There are horizontal and sectoral EU regulations that govern licensing and the export refunds scheme;
  • Applications for refunds comprise export declarations, which are sent in the first place to the customs authority (i.e. the Revenue Commissioners). These export declarations (known as SADs) are then validated and transferred to the Department of Agriculture, Fisheries and Food;
  • Payment declarations for export refunds must be submitted online using the Revenue Commissioners ROS service;
  • Management committees chaired and operated by the European Commission establish rates of refunds from time to time; rates are subject to change at any time.

Further information can be obtained from, Export Refunds Division, Department of Agriculture, Fisheries and Food, Johnstown Castle Estate, Co Wexford. Tel: 053 9163400.

AID FOR PRIVATE STORAGE

The Schemes for Aid to Private Storage of butter, cheese, pigmeat, sheepmeat and beef are market support measures introduced by the EU Commission when seasonal imbalance arise between supply and demand in the butter, cream and cheese markets or in the case of pigmeat, sheepmeat and beef when the price falls below a benchmark level in any EU Member State.

The Schemes aim is to facilitate producers to store these products for a stipulated storage period. At the end of the storage period the storer receives aid at a rate, which has been fixed in advance.

They are an alternative to public intervention in that the products remain the property of the storers to sell at their unrestricted discretion at the end of the storage period.

Further information can be obtained from Aids to Private Storage Section, Department of Agriculture, Fisheries and Food, Johnstown Castle Estate, Co. Wexford. Tel: 053 9163437

CEREALS INTERVENTION

The intervention system for cereals, which is a market support scheme, is open between 1 November and 31 May of the following year, subject to a minimum quantity being offered and the grain reaching the quality specifications laid down. The intervention price paid to the offeror is increased by monthly increments. The price paid for standard quality grain is currently €107.731 per tonne. The price paid depends on the month of take-over. Bonuses or deductions are made depending on the quality of the grain.

INTERVENTION BUTTER AND SKIMMED MILK POWDER (SMP)

The intervention system is designed to support prices for basic products by removing surpluses of butter and SMP from the market. From March to August, intervention purchasing for butter is triggered in an EU Member State when the market price falls below 92% of the butter intervention price for two weeks in succession. Butter is bought only when the facility is open at 90% of the intervention price. Buying-in will cease once the quantities offered Community-wide exceed 30,000 tonnes. In such cases, buying-in may take place using a tendering system. Intervention purchasing of butter is suspended when the reported market price for butter is equal to or higher than 92% of intervention price for two consecutive weeks. Intervention buying-in for SMP operates from March to August each year. Quantities up to a limit of 109,000 tonnes per year may be purchased at the intervention price - thereafter a tendering system may apply.

Further information on the Intervention Schemes may be obtained from On-Farm Investment, Subsidies and Storage Division, Department of Agriculture, Fisheries and Food, Johnstown Castle Estate, Co Wexford. Tel: 053 9165563

OTHER EU MILK MARKET SUPPORT MEASURES

CASEIN AND CASEINATES

The Commission may decide in accordance with Regulation 1234/2007 that aid shall be granted for Community produced skimmed milk processed into casein and caseinates. The aid rate is currently set at nil.

SKIM MILK POWDER (SMP) DISPOSAL SCHEMES

The Commission may decide in accordance with Regulation 1234/2007 that aid shall be granted for incorporation or denaturing of SMP into animal feed. The aid rate is currently set at nil.

SCHOOL MILK SCHEME

EU Regulation 657/2008, as amended by EU Regulation 966/2009 provides for aid on the sale of milk and milk products supplied to schoolchildren. Each child is allowed .25 litres of milk per school day. This scheme is co-financed by the EU and the Exchequer.

Further information can be obtained from Milk Subsidies Section, Department of Agriculture, Fisheries and Food, Johnstown Castle Estate, Co. Wexford. Tel: 053 9163405