Intervention price

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The intervention price is a guaranteed minimum price set by the European Union for certain agricultural products such as grain or butter. It forms the basis of the price system for agricultural products within the EU - in contrast to world market prices , which can be subject to strong fluctuations as they are based on the relationship between supply and demand . The intervention price is primarily derived from the threshold prices of the products that are imported from the world market into the EU and can be artificially kept at a high level in order to protect the common internal market .

The producers are guaranteed to buy their products at the minimum price; if this cannot be achieved on the EU market, an intervention agency buys the products at the intervention price. Since this approach creates incentives for overproduction , the intervention prices and the extent of intervention measures were reduced overall.

Regulation since 2014

This form of market intervention and agricultural subsidy has been in place since 2014 in accordance with Regulation (EU) No. 1370/2013 of the Council of December 16, 2013 with measures to set certain subsidies and reimbursements in connection with the common market organization for agricultural products on the basis of Regulation ( EU) No. 1308/2013. She speaks of the price of public intervention at which the products covered by these measures are

  1. in a quantitative restriction at a fixed price or
  2. when buying by way of tendering as the maximum price

can be bought. The amount of the purchase price is based on a reference price also mentioned reference threshold , which is set by the Commission but will be regularly reviewed and can be customized. The following is specified in particular:

  • For common wheat, durum wheat, barley, maize and paddy rice, the intervention price is the same as the reference threshold of 101.31 EUR / tonne and for rice it is 150 EUR / t, with an annual upper limit of 3 million tonnes for the purchase of common wheat at a fixed price .
  • For butter , the fixed price up to an annual mass of 50,000 t (2016: 100,000 t) and in the tendering process the maximum price is 90% of the reference threshold of EUR 246.39 / 100 kg (EUR 2.22 / kg). In 2003 the intervention price was EUR 328.20 / 100 kg.
  • For skimmed milk powder , a reference threshold and an intervention price of 169.80 EUR / 100 kg as well as an annual maximum quantity for the fixed price of 109,000 t (2016: 350,000 t, 2017 and 2018, however, 0 t) is determined.
  • Reference thresholds of EUR 2,224 per tonne of carcass of male cattle and EUR 1,509.39 per tonne of pig carcass are set for meat.

The Federal Agency for Agriculture and Food, as the market regulation agency and thus the responsible intervention agency in Germany, will again buy butter and spray skimmed milk powder in 2020 from March to 30 September 2020 until the EU-wide annual maximum quantities are reached. In 2016, the German authorities spent EUR 103 million on the purchase and storage of dairy products in particular.

See also

Web links

Individual evidence

  1. ↑ Art. 2 of Regulation (EU) No. 1370/2013
  2. ↑ Art. 3 Regulation (EU) No. 1370/2013
  3. ↑ Art. 1a para. 1 Regulation (EU) No. 1370/2013, for the amendment to para. 2f.
  4. ↑ Milchindustrie-Verband eV: Milkipedia on intervention price
  5. ↑ Art. 1a para. 1 d) and f) Regulation (EC) No. 1370/2013.
  6. ↑ Sections 7 and 3 of the Act for the Implementation of Common Market Organizations and Direct Payments (Market Organization Act - MOG)
  7. ↑ Guidelines for butter , for stomach milk powder
  8. ↑ Jost Maurin: The Butterberg is back , TAZ, July 23, 2017