We are all aware of the vast quantity of SMP in intervention, at around 380,000 tonnes. The last tender run by the EU managed to shift just 4,337 tonnes of the stuff, at €1,110 per tonne. Offered prices ranged from €650 to €1,270 per tonne, and are well down on the actual selling price the EU achieved in November, of €1,390 per tonne.
These prices really are in the realms of “bargain basement”, but there are just no prospects of shifting it at anything like a reasonable price. It cannot be subsidised to shift it (that is illegal) and animal feed users have to buy it at a price competitive with alternatives – or producers of the alternatives would cry foul. It cannot be used as biomass – it is just not economic to do so.
Therefore, it will just sit in store – until someone actually wants it at a price the EU will sell it at.
For more information, please contact Charles at firstname.lastname@example.org or your local FCG office.