ANNOUNCEMENT 04 May 2020

In May 2020, the European Union approved temporary storage aid for certain cheeses until the end of June.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Official Journal of the European Union, L 140/1, issued on 4 May 2020, Commission Implementing Regulation (EU) 2020/591 of 30 April 2020: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0591
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) 2020/591 introducing storage aid for certain cheeses. Under the mechanism, local producers of certain cheeses are granted aid in return for temporarily withdrawing a minimum of 500 kg of the subject good from the market. The subject good must be withdrawn from the market for a period between a minimum of 60 days and a maximum of 180 days. The total aid granted is EUR 15.57 (USD 16.98) per tonne covering fixed storage costs and EUR 0.40 (USD 0.44) per tonne per day for contractual storage. The latter covers the whole period the subject good is withdrawn from the market. The cheeses must be of EU origin and of a sound and fair marketable quality. Additionally, the cheese must have aged in accordance with a minimum mutation period set by the protected designation of origin or from a protected geographical indicator. 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 certain cheeses 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.

AFFECTED SECTORS