ImprimirPrivate storage subsidies
Section 3 of Chapter I of Heading I of Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007, establishes that subsidies may be granted for private storage of certain products within the intervention methods for market regulation inside the European Union, for the purpose of balancing supply and stabilising prices.
Article 9 of Regulation (EU) No. 1308/2013, of the European Parliament and of the council, sets out that products that can receive this subsidy must originate in the European Union. If they come from crops, these must have been harvested in the European Union, and if they come from milk, this must have been produced in the European Union.
Article 17 of the same regulation sets out the eligible products for this subsidy, which only starts up, and following a prior decision by the European Commission, taking the following into account:
- The average prices recorded in the European Union market, the reference thresholds and the production costs of the products concerned; and/or
- The need to respond appropriately to a particularly difficult market situation or economic development that has a significant negative impact on the sector’s margins.,
These products are as follows:
- White sugar
- Olive oil
- Flax fibre
- Fresh or refrigerated meat from bovine animals aged eight months and over
- Butter produced from cream obtained directly and exclusively from cow's milk.
- Cheese, as long as it has a protected designation of origin or a protected geographical indication and that is stored for longer than the ripening period provided for in the specification sheet for the product, or the ripening period that contributes to increasing the value of the cheese.
- Powdered skimmed milk made from cow’s milk.
- Pork meat
- Sheep and goats meat
The following acts were adopted within this legal framework:
Commission Delegated Regulation (EU) 2016/1238 of 18 May 2016, completing European Parliament and Council Regulation (EU) No 1308/2013 regarding public intervention and aid for private storage.
Commission Implementing Regulation (EU) 2016/1240 of 18 May 2016, establishing the implementing provisions of European Parliament and Council Regulation (EU) No 1308/2013 regarding public intervention and aid for private storage.
During the past few years, the following private storage of products has been carried out:
The pork meat sector has been experiencing serious difficulties for several months, due to the sharp downturn in exports to China, the growing spread of African swine fever to various Member States, the persistent impact of the restrictions imposed by COVID-19 and the Russian invasion of Ukraine. As a result of this, a steep descent in export demand has occurred for certain products in the pork meat sector. To tackle the situation, the Commission published Implementing Regulation (EU) 2022/470 on 23 March, which grants private storage subsidies for pork meat and sets the amount of the subsidy in advance.
Commission Implementing Regulation (EU) 2022/470 of 23 March, granting private storage subsidies for pork meat and sets the amount of the subsidy in advance.
Coordination Circular 5/2022. Private storage subsidies for pork via the subsidy system fixed in advance
Weekly report on private storage subsidies for pork via the subsidy system fixed in advance
In 2020, the situation caused by the COVID-19 health crisis drove the European Commission to adopt a series of measures with the aim of starting up private storage of specific products, in such a way that would permit the withdrawal of certain quantities from the market to alleviate the production sector. The products stored were as follows:
- Powdered skimmed milk
- Butter
- Cheese
- Fresh or refrigerated meat from bovine animals aged eight months and over
- Sheep and goats meat
The storage of all these products ended during 2020.
The following regulations were published for each one of the products, which have their own specific storage idiosyncrasies:
Commission Implementing Regulation (EU) 2020/598 of 30 April 2020, granting private storage subsidies for powdered skimmed milk and setting the amount of the subsidy in advance.
Commission Implementing Regulation (EU) 2020/597 of 30 April 2020, granting private storage subsidies for butter and setting the amount of the subsidy in advance.
Commission Delegated Regulation (EU) 2020/591 of 30 April 2020 which opened a temporary, exceptional scheme for the private storage of certain types of cheese is opened, and set the amount of the subsidy in advance.
Commission Implementing Regulation (EU) 2020/596 of 30 April 2020, granting private storage subsidies for fresh or refrigerated meat from bovine animals aged eight months and over and setting the amount of the subsidy in advance.
Commission Implementing Regulation (EU) 2020/595 of 30 April 2020, granting private storage subsidies for sheep and goats meat and setting the amount of the subsidy in advance.
Coordination circulars:
Coordination Circular 8/2020. Subsidy Award Procedure for private storage of powdered skimmed milk
Coordination Circular 9/2020. Award Procedure for the Private Storage of butter
Coordination Circular 10/2020. Award Procedure for the Private Storage for certain cheeses
Coordination Circular 6/2020. Subsidy Award Procedure for the Private Storage of bovine meat.
Reports on storage of products in 2020
Data report on private storage of meat products
Data report on private storage of dairy products
The high availability of olive oil on the European community market, caused by an exceptionally high level of stocks, along with the uncertainties about the foreign market and the low prices, brought the European Commission to adopt the Commission Implementing Regulation (EU) 2019/1882, of 8 November 2019, which began procedures for tendering in relation to the amount of the subsidy for private storage of olive oil.
This regulation established four sub-periods for submitting tenders for private storage of olive oil and, at the same time, determined the following:
- A minimum amount of 50 tonnes for each tender
- A period of 180 days in private storage
- The different categories of oil that could be stored: extra virgin olive oil, virgin olive oil and lampante olive oil.
The relevant Commission implementing regulation for each one of the four sub-periods was published, and set a maximum amount for the subsidy per tonne and day for each category of oil.
Coordination circular 33/2019. Subsidy award procedure for the private storage of olive oil. (Tender from 21/11/2019)
Throughout 2014 and 2015, the European Union pork sector market deteriorated due to its specific characteristics, the increase in production in the Union and the decrease in exports due to the loss of Russia as an export market. As a result, market prices recorded on the European Union market from the middle of August 2015 were lower than the reference threshold provided for in article 7, paragraph 1, letter f), of Regulation (EU) No 1308/2013 and, therefore, there was a considerable negative effect on the pork sector. It was, therefore, decided to set up private storage subsidies for pork meat.
The following acts were adopted within this legal framework:
Commission Implementing Regulation (EU) 2015/2334 of 14 December 2015, opening private storage for pork meat and setting the amount of the subsidy in advance.
Announcement of aid concession for private pork meat storage (from 04/01/2016)
- Amounts applied for by category and storage period (to 20/01/2016)
- Amounts applied for, by category and autonomous region (to 20/01/2016)
Commission response of 15/01/2016 in relation to the consultation submitted as to the admissibility of certain parts in the framework of subsidies for the private storage of pork meat issued through Implementing Regulation (EU) 2015/2334 of 14 December 2015:
Since 2014, the European Union pork sector market deteriorated due to its specific characteristics, the increase in production in the Union and the decrease in exports due to the loss of Russia as an export market. As a result, market prices recorded on the European Union market for more than 18 weeks in a row were lower than the reference threshold provided for in article 7, paragraph 1, letter f), of Regulation (EU) No. 1308/2013 and, therefore, there was a considerable negative effect on the pork sector. It was, therefore, decided to set up private storage subsidies for pork meat.
The following acts were adopted within this legal framework:
Commission Implementing Regulation (EU) 2015/360 of 5 March 2015, opening private storage for pork meat and setting the amount of the subsidy in advance.
Announcement of aid concession for private pork meat storage (from 09/03/2015)
- Amounts applied for by category and storage period (to 29/04/2015)
- Amounts applied for, by category and autonomous region (to 29/04/2015)
On 7 August 2014, the Russian government prohibited the import of certain products from the European Union to Russia, including dairy products. The evolution of prices and stock reflected a particularly difficult market situation, for which reason it was decided to grant private storage subsidies for specific dairy products.
- Powdered skimmed milk
- Butter
- Cheese (no applications were submitted in Spain).
The following acts were adopted within this legal framework:
Commission Implementing Regulation (EU) 948/2014 of 4 September 2014, opening private storage for powdered skimmed milk and setting the amount of the subsidy in advance.
Commission Implementing Regulation (EU) 2015/1851, which amends Implementing Regulation (EU) no. 948/2014 regarding the contractual storage period and the amount of the subsidies that should be awarded for the private storage of powdered skimmed milk.
Commission Implementing Regulation (EU) 947/2014 of 4 September 2014, opening private storage for butter and setting the amount of the subsidy in advance.
Commission Delegated Regulation (EU) 2015/1852 of 15 October 2015, which opened a temporary, exceptional scheme for the private storage of certain types of cheese is opened, and set the amount of the subsidy in advance.
Announcements on the granting of subsidies
Announcement of aid concession for private storage for powdered skimmed milk (from 8/09/2014)
Announcement of aid concession for private butter storage (from 8/09/2014)
Announcement of aid concession for private cheese storage (from 10/09/2014)
In the case of cheese, given that in the end no applications were submitted in Spain, the quotas originally allocated were reassigned to Ireland, France, Italy, Lithuania, the Netherlands, Finland, Sweden and the United Kingdom through Commission Implementing Regulation (EU) 2016/225, of 17 February 2016, that set the maximum product volume by Member State and the deadline for submitting applications for exceptional subsidies for private storage for the amounts of specific cheeses that were unused with respect to those set in Regulation (EU) 2015/1852.
