ANNOUNCEMENT 04 May 2020

In May 2020, the European Union approved temporary storage aid for skimmed milk powder until the end of June.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Official Journal of the European Union, L 140/34, issued on 4 May 2020, Commission Implementing Regulation (EU) 2020/598 of 30 April 2020: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0598&qid=1604571665393
European Commission, press release of 22 April 2020, Coronavirus: Commission announces exceptional measures to support the agri-food sector: https://ec.europa.eu/commission/presscorner/detail/en/IP_20_722

Inception date: 07 May 2020 | Removal date: 30 Jun 2020

Financial grant

On 4 May 2020, the European Commission issued Regulation (EU) 2020/598 introducing storage aid for skimmed milk powder. Under the mechanism, local producers of skimmed milk powder are granted aid in return for temporarily withdrawing a minimum of 10 tonnes of the subject good from the market. The subject good must be withdrawn from the market for a period between a minimum of 90 days and a maximum of 180 days. The total aid granted is EUR 5.11 (USD 5.57) per tonne covering fixed storage costs and EUR 0.13 (USD 0.14) per tonne per day for contractual storage. The latter covers the whole period the subject good is withdrawn from the market. The skimmed milk powder must be of EU origin and of a sound and fair marketable quality. The aid is granted following an application from an eligible company located in the EU. The application period is open between 7 May and 30 June 2020.

In this context, on 22 April 2020, the Agriculture Commissioner Janusz Wojciechowski stated in a press release concerning the introduction of a number of support measures including storage aid on skimmed milk powder that: ”The consequences of the coronavirus crisis are increasingly being felt in the agri-food sector and this is why we have decided to take swift action, in addition to the measures already taken since the outbreak of the crisis. The measures proposed are, in the present state of market developments, intended to send a signal aimed at stabilising markets and are considered to be the most appropriate for providing stability to future prices and production and thus stable food supplies and food security. Today we are announcing a new and exceptional package of measures to support the most affected agri-food sectors by addressing already observed disturbances as well as future risks. I am confident that these measures will relieve markets, and show concrete results rapidly.” 

Notably, on the same day, the Commission also approved storage aid on a number of other products, see related state acts.

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