Information note of the European Court of Auditors concerning Special Report No 11/2008 – The management of the European Union support for the public storage operations of cereals

The objective of public storage of agricultural products is to stabilize the related markets and to ensure a fair standard of living for the agricultural community. Member States buy in the products at the intervention price set by the Council based on a proposal from the Commission and keep them in storage until they can be sold without undermining the prices on the EU markets. The Commission refunds to the Member Sates the cost of storage and a part of the initial purchase cost of the bought in produce (depreciation element).

The intervention policy for cereals dates back to 1962 when the Council established it as an instrument of the Common Organization of the market. During the last years the stocks of cereals in storage have been considerably reduced due to a significant increase in market prices. The ongoing "Health Check" on agricultural policy includes proposals by the Commission to maintain public intervention for at least the major cereal (bread wheat) and certain other products in order to maintain a safety-net support in case of market disruptions.