Press Release: European Commission proposes to end public intervention for maize

The European Commission has proposed to abolish the system of public intervention purchases for maize from the 2007/2008 marketing year. At the end of the 2005/2006 marketing season, EU maize intervention stocks had spiralled to 5.6 million tonnes, or 40 percent of total intervention stocks. Without changes to the current system, these stocks, which are bought and stored at public expense, are forecast to rise to as much as 15.6 million tonnes by 2013. Possible outlets for soaring stocks of maize are limited, and maize is unsuitable for long-term storage. Regions that historically exported maize onto the world market are now offering a large part of their harvest directly for intervention. Ending intervention for maize would allow the EU cereals market to achieve a new balance and see intervention regain its original purpose as a safety net. The proposal will now be transmitted to the Council and the European Parliament.