title: Commission Implementing Regulation (EU) 2020/595 of 30 April 2020 granting aid for private storage for sheepmeat and goatmeat and fixing the amount of the aid in advance

text:
                  4.5.2020

                  EN

                  Official Journal of the European Union

                  L 140/21

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/595
         of 30 April 2020
         granting aid for private storage for sheepmeat and goatmeat and fixing the amount of the aid in advance
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to 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 (1), and in particular Article 18(2) and Article 223(3)(c) thereof,
         Having regard to Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (2) and in particular Article 4(2)(b) thereof,
         Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (3), and in particular Article 62(2)(b) thereof,
         Whereas:

                     (1)

                     Due to the extensive movement restrictions put in place in the Member States to address the current COVID-19 pandemic, the sales of certain categories of sheep and goat products such as the lamb and goat carcases aged less than 12 months to the hospitality and catering industry have been severely impacted.

                     (2)

                     As a result, there has been a sharp drop in demand for certain sheep and goat products. The sheep and goat sector is therefore confronted with a market disturbance due to supply-demand imbalance. This has a significant negative impact on the margins in the sector and compromises the financial viability of the Union farmers. Without measures against this market disturbance, the prices of sheep and goat products in the Union are expected to deteriorate and downwards pressure is likely to carry on.

                     (3)

                     The current supply-demand imbalance in the sheep and goat meat markets can be mitigated by storage of ovine and caprine carcases aged less than 12 months that would have been destined in majority to the hospitality and catering industry.

                     (4)

                     The extensive movement restrictions put in place in the Member States to address the current COVID-19 pandemic have also affected the availability of labour force in slaughterhouses and food processing and reduced the capacities in transport and logistics.

                     (5)

                     In order to mitigate the current difficulties and in particular to reduce the supply-demand imbalance, which in turn exerts a downward pressure on all sheep and goat meat product prices, and to alleviate those difficult market conditions, it is appropriate to grant private storage aid for fresh or chilled meat of ovine and caprine animals aged less than 12 months.

                     (6)

                     Commission Delegated Regulation (EU) 2016/1238 (4) and Commission Implementing Regulation (EU) 2016/1240 (5) lay down rules for the implementation of the aid for private storage. Save as otherwise provided in this Regulation, the provisions of Delegated Regulation (EU) 2016/1238 and Implementing Regulation (EU) 2016/1240 should apply to the private storage aid for fresh and chilled meat of ovine and caprine animals aged less than 12 months.

                     (7)

                     The amount of the aid should be fixed in advance so as to allow for a rapid and flexible operational system. In accordance with Article 4 of Regulation (EU) No 1370/2013, the aid for private storage fixed in advance should be based on storage costs and other relevant market elements. It is appropriate to fix an aid for the total storage period based on the costs for placing in and removal of storage, cold storage costs per day and the partial compensation for the loss of value from fresh or chilled to frozen sheep and goat meat.

                     (8)

                     For private storage aid to be effective and have a real impact on the market, the aid should be granted only for the products that have not yet been placed in storage. In that context, it is appropriate to fix the period of storage.

                     (9)

                     For reasons of administrative efficiency and simplification, the minimum quantity of products to be covered by each application should be fixed.

                     (10)

                     A security should be fixed in order to guarantee the seriousness of the application and to ensure that the measure will have the desired effect on the market.

                     (11)

                     The measures put in place to address the COVID-19 pandemic may affect compliance with the requirements for on-the-spot checks concerning aid for private storage pursuant to Article 60 of Implementing Regulation (EU) 2016/1240. It is appropriate to provide flexibility to the Member States concerned by those measures, by prolonging the period for carrying out the entry into storage checks or by substituting them by the use of other relevant evidence, and by not requiring the carrying out of unannounced checks. It is therefore appropriate to derogate from certain provisions of Implementing Regulation (EU) 2016/1240 for the purposes of this Regulation.

                     (12)

                     Article 42(1)(b) of Implementing Regulation (EU) 2016/1240 provides that Member States should notify the Commission of admissible applications once per week. In order to ensure transparency, monitoring and proper administration of the amounts available for the aid, more frequent notifications are necessary for the effective managing the scheme.

                     (13)

                     In order to have an immediate impact on the market and to contribute to stabilise prices, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

                     (14)

                     The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Subject matter and scope

               1.   This Regulation provides for private storage aid for fresh or chilled meat of ovine and caprine animals aged less than 12 months as referred to in point (i) of the first subparagraph of Article 17 of Regulation (EU) No 1308/2013, hereinafter the ‘aid’.

               2.   Delegated Regulation (EU) 2016/1238 and Implementing Regulation (EU) 2016/1240 shall apply save as otherwise provided for in this Regulation.

            Article 2
            Eligible products

               1.   The list of products eligible for aid is set out in the Annex.

               2.   In order to qualify for the aid, the meat shall be of sound and fair marketable quality and of Union origin. The product shall fulfil the requirements laid down in Section III of Annex VI to Delegated Regulation (EU) 2016/1238.

               3.   Aid shall only be granted for quantities of fresh or chilled meat that have not yet been placed in storage.

            Article 3
            Submission and admissibility of applications

               1.   Applications for aid may be lodged as from 7 May 2020.

               2.   Each application shall refer to the products listed in the Annex, indicating the relevant CN code.

               3.   The minimum eligible quantity for each application shall be 5 tonnes.

            Article 4
            Amount of aid and period of storage

               1.   The relevant amounts of aid per storage period are set out in the Annex.

               2.   Contractual storage shall end on the day preceding that of the removal from storage.

               3.   Aid may be granted only for a storage period of 90, 120 or 150 days.

            Article 5
            Security
            When submitting an application for aid for the products eligible for aid, the amount of the security required in accordance with Article 4(b) of Delegated Regulation (EU) 2016/1238 shall be EUR 100/tonne.

            Article 6
            Checks

               1.   By way of derogation from Article 60(1) and (2) of Implementing Regulation (EU) 2016/1240, when due to the measures put in place to address the COVID-19 pandemic, hereinafter ‘the measures’, the paying agency is not in a position to carry out in due time the checks referred to in Article 60(1) and (2) of that Regulation, the Member State concerned may:

                           (a)

                           extend the period referred to in the first subparagraph of Article 60(1) to carry out those checks by up to 30 days after the end of the measures; or

                           (b)

                           substitute those checks during the period when the measures are applicable by the use of relevant evidence, including geotagged photos or other evidence in electronic format.

               2.   By way of derogation from the first subparagraph of Article 60(3) of Implementing Regulation (EU) 2016/1240, where due to the measures the paying agency is not in a position to carry out the unannounced on-the-spot checks, the paying agency shall not be required to perform unannounced checks during the period when the measures are in place.

            Article 7
            Notifications of the quantities applied for
            By way of derogation from Article 42(1)(b) of Implementing Regulation (EU) 2016/1240, Member States shall notify the Commission of the quantities of the products which have been the subject of an admissible application and the related information, as follows:

                        (a)

                        each Monday not later than 12.00 (Brussels time) the quantities of the products for which admissible applications have been submitted on Thursday and Friday of the preceding week;

                        (b)

                        each Thursday not later than 12.00 (Brussels time) the quantities of the products for which admissible applications have been submitted on Monday, Tuesday and Wednesday of the same week.

            Article 8
            Entry into force
            This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 30 April 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 347, 20.12.2013, p. 671.

            (2)  OJ L 346, 20.12.2013, p. 12.

            (3)  OJ L 347, 20.12.2013, p. 549.

            (4)  Commission Delegated Regulation (EU) 2016/1238 of 18 May 2016 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to public intervention and aid for private storage (OJ L 206, 30.7.2016, p. 15).

            (5)  Commission Implementing Regulation (EU) 2016/1240 of 18 May 2016 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to public intervention and aid for private storage (OJ L 206, 30.7.2016, p. 71).

            ANNEX
            List of products eligible for aid referred to in Article 2(1) and the relevant amounts of aid per storage period as referred to in Article 4(1)

                        Custom nomenclature code (CN code) of products

                        Products description

                        Amount of aid per storage period
                        (EUR/tonne)

                        90 days

                        120 days

                        150 days

                        1

                        2

                        3

                        4

                        5

                        ex 0204 10 00

                        Fresh or chilled carcases and half carcases of lamb aged less than twelve months

                        866

                        890

                        915

                        ex 0204 50 11

                        Fresh or chilled carcases and half carcases of goat aged less than twelve months


title: Commission Implementing Regulation (EU) 2020/596 of 30 April 2020 granting aid for private storage for fresh and chilled meat of bovine animals aged eight months or more and fixing the amount of aid in advance

text:
                  4.5.2020

                  EN

                  Official Journal of the European Union

                  L 140/26

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/596
         of 30 April 2020
         granting aid for private storage for fresh and chilled meat of bovine animals aged eight months or more and fixing the amount of aid in advance
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to 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 (1), and in particular Article 18(2) and Article 223(3)(c) thereof,
         Having regard to Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (2), and in particular Article 4(2)(b) thereof,
         Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (3), and in particular Article 62(2)(b) thereof,
         Whereas:

                     (1)

                     Due to the extensive movement restrictions put in place in the Member States to address the current COVID-19 pandemic, the sales of certain categories of beef products, such as hindquarters destined for the production of different steak cuts, to the hospitality and catering industry have been severely impacted. The hospitality and catering industry is responsible for approximately 70% of the Union domestic demand of different steak cuts produced from hindquarters. Consequently, those hindquarters are now diverted for production of other bovine meat products and therefore the prices have already fallen.

                     (2)

                     As a result of a change in the beef consumption pattern, there has been a sharp drop in demand for certain beef products. The beef sector is therefore confronted with a market disturbance due to a supply-demand imbalance. This has a significant negative impact on the margins in the sector and compromises the financial viability of the Union farmers. Without measures against this market disturbance, the prices of beef products in the Union are expected to deteriorate and downwards pressure is likely to carry on.

                     (3)

                     The extensive movement restrictions have also affected the availability of labour force in slaughterhouses and food processing and reduced the capacities in transport and logistics.

                     (4)

                     The current difficulties and in particular the supply-demand imbalance in the bovine meat market can be mitigated by storage of hindquarters destined for production of products that would have been destined in majority to the hospitality and catering industry.

                     (5)

                     In order to reduce the current supply-demand imbalance, which in turn exerts a downward pressure on all bovine meat product prices, and to alleviate those difficult market conditions, it is appropriate to grant private storage aid for fresh or chilled meat of bovine animals aged eight months or more.

                     (6)

                     Commission Delegated Regulation (EU) 2016/1238 (4) and Commission Implementing Regulation (EU) 2016/1240 (5) lay down rules for the implementation of the aid for private storage. Save as otherwise provided in this Regulation, the provisions of Delegated Regulation (EU) 2016/1238 and Implementing Regulation (EU) 2016/1240 should apply to the private storage aid for fresh or chilled meat of bovine animals aged eight months or more.

                     (7)

                     The amount of the aid should be fixed in advance so as to allow for a rapid and flexible operational system. In accordance with Article 4 of Regulation (EU) No 1370/2013, the aid for private storage fixed in advance should be based on storage costs and other relevant market elements. It is appropriate to fix an aid for the total storage period based on costs for placing in and removal of storage, cold storage costs per day and partial compensation for the loss of value from fresh or chilled to frozen beef.

                     (8)

                     For private storage aid to be effective and have a real impact on the market, the aid should be granted only for the products that have not yet been placed in storage. In that context, it is appropriate to fix the period of storage.

                     (9)

                     For reasons of administrative efficiency and simplification, the minimum quantity of products to be covered by each application should be fixed.

                     (10)

                     A security should be fixed in order to guarantee the seriousness of the application and to ensure that the measure will have the desired effect on the market.

                     (11)

                     The measures put in place to address the COVID-19 pandemic may affect compliance with the requirements for on-the-spot checks concerning aid for private storage pursuant to Article 60 of Implementing Regulation (EU) 2016/1240. It is appropriate to provide flexibility to the Member States concerned by those measures, by prolonging the period for carrying out the entry into storage checks or by substituting them by the use of other relevant evidence, and by not requiring the carrying out of unannounced checks. It is therefore appropriate to derogate from certain provisions of Implementing Regulation (EU) 2016/1240 for the purposes of this Regulation.

                     (12)

                     Article 42(1)(b) of Implementing Regulation (EU) 2016/1240 provides that Member States should notify the Commission of admissible applications once per week. In order to ensure transparency, monitoring and proper administration of the amounts available for the aid, more frequent notifications are necessary for the effective managing the scheme.

                     (13)

                     In order to have an immediate impact on the market and to contribute to stabilise prices, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

                     (14)

                     The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Subject matter and scope

               1.   This Regulation provides for private storage aid for fresh or chilled meat of bovine animals aged eight months or more, as referred to in point (d) of the first subparagraph of Article 17 of Regulation (EU) No 1308/2013, hereinafter the ‘aid’.

               2.   Delegated Regulation (EU) 2016/1238 and Implementing Regulation (EU) 2016/1240 shall apply save as otherwise provided for in this Regulation.

            Article 2
            Eligible products

               1.   The list of products eligible for aid is set out in the Annex.

               2.   In order to qualify for the aid, the meat shall be of sound and fair marketable quality and of Union origin. The product shall fulfil the requirements laid down in Section III of Annex VI to Delegated Regulation (EU) 2016/1238.

               3.   Aid shall only be granted for quantities of fresh or chilled meat of bovine animals aged eight months or more that have not yet been placed in storage.

            Article 3
            Submission and admissibility of applications

               1.   Applications for aid may be lodged as from 7 May 2020.

               2.   Each application shall refer to the products listed in the Annex, indicating the relevant conformation class.

               3.   The minimum eligible quantity for each application shall be 10 tonnes.

            Article 4
            Amount of aid and period of storage

               1.   The relevant amounts of aid per storage period are set out in the Annex.

               2.   Contractual storage shall end on the day preceding that of the removal from storage.

               3.   Aid may be granted only for a storage period of 90, 120 or 150 days.

            Article 5
            Security
            When submitting an application for aid for the products eligible for aid, the amount of the security required in accordance with Article 4(b) of Delegated Regulation (EU) 2016/1238 shall be EUR 100/tonne.

            Article 6
            Checks

               1.   By way of derogation from Article 60(1) and (2) of Implementing Regulation (EU) 2016/1240, where due to the measures put in place to address the COVID-19 pandemic, hereinafter ‘the measures’, the paying agency is not in a position to carry out in due time the checks referred to in Article 60(1) and (2) of that Regulation, the Member State concerned may:

                           (a)

                           extend the period referred to in the first subparagraph of Article 60(1) to carry out those checks by up to 30 days after the end of the measures; or

                           (b)

                           substitute those checks during the period when the measures are applicable by the use of relevant evidence, including geotagged photos or other evidence in electronic format.

               2.   By way of derogation from the first subparagraph of Article 60(3) of Implementing Regulation (EU) 2016/1240, where due to the measures the paying agency is not in a position to carry out the unannounced on-the-spot checks, the paying agency shall not be required to perform unannounced checks during the period when the measures are in place.

            Article 7
            Notifications of the quantities applied for
            By way of derogation from Article 42(1)(b) of Implementing Regulation (EU) 2016/1240, Member States shall notify the Commission of the quantities of the products which have been the subject of an admissible application and the related information, as follows:

                        (a)

                        each Monday not later than 12.00 (Brussels time) the quantities of the products for which admissible applications have been submitted on Thursday and Friday of the preceding week;

                        (b)

                        each Thursday not later than 12.00 (Brussels time) the quantities of the products for which admissible applications have been submitted on Monday, Tuesday and Wednesday of the same week.

            Article 8
            Entry into force
            This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 30 April 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 347, 20.12.2013, p. 671.

            (2)  OJ L 346, 20.12.2013, p. 12.

            (3)  OJ L 347, 20.12.2013, p. 549.

            (4)  Commission Delegated Regulation (EU) 2016/1238 of 18 May 2016 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to public intervention and aid for private storage (OJ L 206, 30.7.2016, p. 15).

            (5)  Commission Implementing Regulation (EU) 2016/1240 of 18 May 2016 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to public intervention and aid for private storage (OJ L 206, 30.7.2016, p. 71).

            ANNEX

               List of products eligible for aid referred to in Article 2(1) and the relevant amounts of aid per a storage period as referred to in Article 4(1)

                        Custom nomenclature code (CN code) of products

                        Products description

                        Products conformation class as provided for in Section III of Annex IV to Regulation (EU) No 1308/2013

                        Amount of aid per storage period
                        (EUR/tonne)

                        90 days

                        120 days

                        150 days

                        1

                        2

                        3

                        4

                        5

                        6

                        ex 0201 20 50

                        Separated hindquarters: the rear part of a half carcase, comprising all the bones and the thigh and sirloin, including the fillet, with a minimum of three whole or cut ribs, with or without the shank and with or without the thin flank

                        S: Superior
                        E: Excellent
                        U: Very good
                        R: Good
                        O: Fair

                        1 008

                        1 033

                        1 058


title: Commission Implementing Regulation (EU) 2020/593 of 30 April 2020 authorising agreements and decisions on market stabilisation measures in the potatoes sector

text:
                  4.5.2020

                  EN

                  Official Journal of the European Union

                  L 140/13

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/593
         of 30 April 2020
         authorising agreements and decisions on market stabilisation measures in the potatoes sector
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to 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 (1), and in particular Article 222 thereof,
         Whereas:

                     (1)

                     The potatoes sector can be divided into fresh potatoes, which are mainly purchased for home consumption, and potatoes for processing, which are used in animal feed and processed food products, such as frozen potatoes (including frozen chips), dried potatoes, prepared or preserved potatoes.

                     (2)

                     The Union production of potatoes amounts to approximately 52 million tonnes, of which 19,5 million tonnes correspond to potatoes for processing. The biggest Union producers of potatoes for processing are Belgium, Germany, France, Italy and the Netherlands. The production of frozen chips is estimated to cover approximately 41 % of the production of potatoes for processing.

                     (3)

                     The Union is a net exporter of processed potatoes. On average, over the last 5 years, an equivalent of at least 4 million tonnes of potatoes for processing is estimated to be exported from Belgium, Germany, France, Italy and the Netherlands to third countries in the form of processed potato products. Exports of frozen potatoes and, in particular, frozen chips, are particularly significant under normal market conditions: 64 % of frozen potatoes exported worldwide come from the Union and the value of exports of frozen chips from the Union to third countries was estimated at EUR 1,85 billion in 2019.

                     (4)

                     Due to the current pandemic of COVID-19 and the extensive movement restrictions on persons put in place in the Member States, producers of potatoes for processing are experiencing economic disruption that is leading to financial difficulties and cash-flow problems.

                     (5)

                     The spread of the disease and the measures in place limit the availability of labour, compromising notably the stages of production, processing and transport of potatoes for processing.

                     (6)

                     The mandatory closure of restaurants and other hospitality establishments such as school and work canteens, as well as the cancellation of sporting and entertainment events, such as cultural and open air festivals, sports tournaments, in the Union and in third countries, has also brought the operation of the hospitality and catering to a halt, leading to significant changes in demand patterns for potato products. As consumers are no longer eating out or buying fast food to a significant extent, consumer demand has shifted towards fresh potatoes for home cooking. Moreover, while consumers have increased their consumption of certain processed potato products, such as crisps and dried puree, this cannot compensate for the drop in demand in the hospitality and catering industry.

                     (7)

                     In addition, buyers in the Union and on the world market are cancelling contracts and delaying the conclusion of new ones in anticipation of further price falls. Moreover, exports are affected by logistical challenges, as the start of the pandemic of COVID-19 in China has led to significant port congestion there and elsewhere. The period of increased blank sailings is expected to continue at least until June 2020, leading to containers being scarcer, in particular the ones for fresh and frozen goods, rates increasing significantly and exporters seeing their shipments postponed. Since the fourth week of March 2020, Union producers of potatoes for processing have reported decreased number of transactions between Member States in a range of 25 to 47 % and for exports to third countries in a range of 30 to 65 %.

                     (8)

                     As a result, while demand for fresh potatoes has, at this stage, increased, there has been a sharp drop in demand for potatoes for processing with an immediate and severe impact on the market. The sharp drop in demand concerns in particular, but is not limited to, potatoes for processing used in frozen chips, other cut potatoes and vacuum-packed products, which are normally consumed in fast food outlets and in restaurants. Due to the different characteristics of fresh potatoes and potatoes for processing, potatoes for transformation cannot be sold in the market for fresh potatoes. As a result, as there are no trades, prices on the markets for futures have dropped significantly and have been reported to be 90 % lower in April 2020 compared to quotes in January 2020. As a consequence of the halt of trades, in some producer Member States such as Belgium and France, there are no longer any price quotations for certain potatoes for processing, which is a sign of acute drop in the volume and value of transactions. In other Member States, such as Germany and the Netherlands, price decreases of 90 % for potatoes for processing have been reported.

                     (9)

                     In addition, there are currently large volumes of potatoes for processing in storage. It is estimated that at least 2 650 000 tonnes of potatoes for processing (value of EUR 400 million) from the 2019 campaign will still be in storage by the end of the 2020 campaign in July 2020. The potatoes for processing that were harvested in October/November 2019 and are still in storage, will soon become unfit for any use because of the deterioration in their quality. In order to make room for the potatoes for processing from the 2020 campaign, producers will need to destroy the part of the remaining stocks that cannot be processed in time. As producers will have to pay transport and destruction costs to destroy the production, there is a risk that potatoes for processing will instead be spread out on fields, as a solution of last resort. The spread of potatoes for processing on fields will create a risk of long-lasting environmental and phytosanitary consequences, because those potatoes will germinate on top of subsequent crops and could develop diseases that could cause long lasting soil contamination and durably jeopardise new plantations.

                     (10)

                     The above circumstances lead to a qualification of these events as a period of severe market imbalance.

                     (11)

                     In order to help producers of potatoes find a balance in this period of severe market imbalance, it is appropriate to allow for agreements and decisions of farmers, farmers’ associations or associations of such associations, or recognised producer organisations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerning potatoes for processing on a temporary basis for a period of 6 months. These measures include: (i) market withdrawals and free distribution; (ii) transformation and processing; (iii) storage; (iv) joint promotion; and (v) temporary planning of production.

                     (12)

                     Such agreements and decisions concerning potatoes for processing could include: (i) withdrawing potatoes from the market for orderly product destruction or for free distribution to food banks or to public institutions; (ii) processing potatoes for other purposes such as animal feed, production for methanisation; (iii) creating and finding storage capacities and preparing potatoes for longer storage periods; (iv) promoting the consumption of processed potatoes products; and (v) planning measures to reduce volumes for future plantations and adjusting existing contracts for potatoes from the 2020 campaign.

                     (13)

                     Any agreement or decision concerning potatoes for processing should be temporarily authorised for a period of 6 months. As this is the period when existing stocks of potatoes from the 2019 campaign have to be managed and the potatoes from the 2020 campaign will be harvested as of this summer, this is the period in which the measures are expected to have the most significant impact.

                     (14)

                     In accordance with the first subparagraph of Article 222(1) of Regulation (EU) No 1308/2013, an authorisation is to be given, if it does not impair the functioning of the internal market and that the agreements and decisions strictly aim at stabilising the sector. These specific conditions exclude agreements and decisions that directly or indirectly lead to partitioning markets, to discrimination based on nationality or to fixing prices. If the agreements and decisions do not fulfil these conditions, or no longer fulfil these conditions, Article 101(1) of the Treaty applies to these agreements and decisions.

                     (15)

                     The authorisation provided for in this Regulation should cover the Union territory given that the severe market imbalance is common to the whole Union.

                     (16)

                     In order for the Member States to be in a position to assess whether agreements and decisions concerning potatoes for processing do not undermine the functioning of the internal market and strictly aim to stabilise the potatoes sector, information should be provided to the competent authorities of the Member State, including the competition authorities of that state, having the highest share of estimated volume of production of potatoes covered by those agreements or decisions on the agreements concluded and decisions taken and on the production volume and time period covered by them.

                     (17)

                     Given the severe market imbalance, the necessity to urgently deal with the remaining stock of potatoes and the run-up to the moment when potatoes are normally harvested, stored and transformed, this Regulation should enter into force on the day following that of its publication.

                     (18)

                     The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Without prejudice to Articles 152(1a), 209(1) and 210(1) of Regulation (EU) No 1308/2013, farmers, farmers' associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations are hereby authorised to conclude agreements concerning potatoes for processing and take common decisions concerning potatoes for processing on market withdrawals and free distribution, transformation and processing, storage, joint promotion and temporary planning of production during a period of 6 months starting from the date of entry into force of this Regulation.

            Article 2
            Member States shall take the necessary measures to ensure that the agreements and decisions referred to in Article 1 do not undermine the proper functioning of the internal market and strictly aim to stabilise the potatoes sector.

            Article 3
            The geographic scope of this authorisation is the Union territory.

            Article 4

               1.   As soon as the agreements or decisions referred to in Article 1 are concluded or taken, the farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerned shall communicate those agreements or decisions to the competent authorities of the Member State having the highest share of estimated volume of production of potatoes covered by those agreements or decisions, indicating the following:

                           (a)

                           the estimated production volume covered;

                           (b)

                           the expected time period of implementation.

               2.   No later than 25 days after the end of the 6-month period referred to in Article 1, the farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerned shall communicate the production volume of potatoes actually covered by the agreements or decisions to the competent authorities referred to in paragraph 1 of this Article.

               3.   In accordance with Commission Implementing Regulation (EU) 2017/1185 (2), Member States shall notify the Commission of the following:

                           (a)

                           no later than 5 days after the end of each 1-month period, the agreements and decisions communicated to them in accordance with paragraph 1 during that period;

                           (b)

                           no later than 30 days after the end of the 6-month period referred to in Article 1, an overview of the agreements and decisions implemented during that period.

            Article 5
            This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 30 April 2020

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 347, 20.12.2013, p. 671.

            (2)  Commission Implementing Regulation (EU) 2017/1185 of 20 April 2017 laying down rules for the application of Regulations (EU) No 1307/2013 and (EU) No 1308/2013 of the European Parliament and of the Council as regards notifications to the Commission of information and documents and amending and repealing several Commission Regulations (OJ L 171, 4.7.2017, p. 113).


title: Commission Implementing Regulation (EU) 2020/594 of 30 April 2020 authorising agreements and decisions on market stabilisation measures in the live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage sector

text:
                  4.5.2020

                  EN

                  Official Journal of the European Union

                  L 140/17

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/594
         of 30 April 2020
         authorising agreements and decisions on market stabilisation measures in the live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage sector
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to 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 (1), and in particular Article 222 thereof,
         Whereas:

                     (1)

                     The Union is a leading producer of live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage (hereinafter ‘live plants and flowers’). The total Union production value in 2019 amounted to EUR 20 billion.

                     (2)

                     Approximately 85 % of the Union production of live plants and flowers is destined to the internal market, whereas the remaining 15 % is exported to third countries.

                     (3)

                     The supply chain in live plants and flowers sector is highly interlinked and depends on smooth and efficiently organised logistics in order to ensure a functioning market system for products that to a large degree are perishable in nature.

                     (4)

                     Furthermore, the production and sales of live plants and flowers is characterised by its seasonality. Most of the live plants and flowers are produced in spring for specific occasions, such as Mother’s day or Easter, and houseplants are specifically produced in smaller pot sizes to adapt to the seasonal demand. The peak of the sales normally takes place during spring. For some of the subsectors, such as annual flowerbed plants and cut flowers, 40 % to 80 % of sales occur from March to June.

                     (5)

                     Due to the current pandemic of COVID-19 and the extensive movement restrictions on persons put in place in the Member States, the live plants and flowers sector is experiencing an economic disruption that is leading to financial difficulties and cash-flow problems for producers.

                     (6)

                     The spread of the disease and the measures in place limit the availability of labour, in particular for transport, compromising notably the stages of production, collection, auctioning and selling of live plants and flowers.

                     (7)

                     The mandatory closure of outdoor markets, garden centres and specialised retail shops, as well as closure of hospitality establishments and cancellation of events and festivities, has also brought the operation of the live plants and flowers sector to a halt. The partial re-opening of garden centres and specialised retail shops in some Member States is not expected to materially alter this situation, as the supply chain is highly interlinked and depends on functioning logistics and limited storage facilities. Social distancing measures are expected to remain in place in the coming months and will continue to affect both transport logistics and sales, as fewer consumers will be able to enter the shops. Moreover, major events, such as annual garden shows taking place in the coming months, have already been cancelled, and other social events that would normally request floral decorations, such as weddings, are also being cancelled.

                     (8)

                     In addition, buyers in the Union and on the world market are cancelling contracts and delaying the conclusion of new ones in anticipation of further price falls. Moreover, exports are affected by logistical challenges, as the start of the pandemic of COVID-19 in China has led to significant port congestion there and elsewhere. The period of increased blank sailings is expected to continue at least until June 2020, leading to containers being scarcer, rates increasing significantly and exporters seeing their shipments postponed.

                     (9)

                     This supply-demand imbalance is generating economic disruption to the live plants and flowers sector. As a result of that imbalance, there has been a sharp drop in demand for live plants and flowers with an immediate and severe impact on the market. Overall demand for live plants and flower products on the Union market has decreased by 80 %. Trade on auctions has been significantly affected. The Dutch auction market, which deals with 35 % of all Union sales, has reported a reduction in turnover of 85 % in mid-March 2020. While there has been some recovery in the Dutch auction market, turnover is still 30 % less than in mid-April 2019. In other Member States, such as Belgium and France, auctions and wholesale markets have closed. Furthermore, the destruction on a large scale of flowerbed plants, which are not storable, and of cut flowers, which are perishable and seasonal, has been reported in certain Member States, such as the Netherlands. This has led to sharp decreases in prices on Dutch auctions. During the week of 16 to 22 March 2020, when the market collapsed, prices were almost 60 % lower than in the same week in 2019. Moreover, during the weeks of 23 to 29 March, 30 March to 5 April, and 6 to 12 April 2020, prices were still 36 % to 23 % lower than during the same weeks in 2019.

                     (10)

                     The above circumstances lead to a qualification of these events as a period of severe market imbalance.

                     (11)

                     In order to help the live plants and flowers sector find a balance in this period of severe market imbalance, it is appropriate to allow for agreements and decisions of farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations in the live plants and flowers sector for a period of 6 months. These measures include: (i) market withdrawal or free distribution; (ii) joint promotion; and (iii) temporary planning of production.

                     (12)

                     Such agreements and decisions could include: (i) collective market withdrawals for an orderly destruction of live plants and flowers; (ii) promotion measures inviting consumers to buy live plants and flowers; and (iii) collective production planning to coordinate the planting of live plants and flowers in view of the future lifting of restrictions.

                     (13)

                     Any agreement or decision should be temporarily authorised during 6 months. As this is the period when most live plants and flowers will be collected and marketed, this is the period in which the measures are expected to have the most significant impact.

                     (14)

                     In accordance with the first subparagraph of Article 222(1) of Regulation (EU) No 1308/2013, an authorisation is to be given, if it does not impair the functioning of the internal market and that the agreements and decisions strictly aim at stabilising the sector. These specific conditions exclude agreements and decisions that directly or indirectly lead to partitioning markets, to discrimination based on nationality or to fixing prices. If the agreements and decisions do not fulfil these conditions, or no longer fulfil these conditions, Article 101(1) of the Treaty applies to these agreements and decisions.

                     (15)

                     The authorisation provided for in this Regulation should cover the Union territory given that the severe market imbalance is common to the whole Union.

                     (16)

                     In order for the Member States to be in a position to assess whether the agreements and decisions do not undermine the functioning of the internal market and strictly aim to stabilise the live plants and flowers sector, information should be provided to the competent authorities of the Member State, including the competition authorities of that state, having the highest share of estimated volume of production of live plants and flowers covered by those agreements or decisions on the agreements concluded and decisions taken and on the production volume and time period covered by them.

                     (17)

                     Given the severe market imbalance is occurring during the period when the majority of sales of live plants and flowers sector takes place, this Regulation should enter into force on the day following that of its publication.

                     (18)

                     The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Without prejudice to Articles 152(1a), 209(1) and 210(1) of Regulation (EU) No 1308/2013, farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations in the live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage sector, hereinafter ‘live plants and flowers sector’, are hereby authorised to conclude agreements and take common decisions on market withdrawals and free distribution, joint promotion and temporary planning of production during a period of 6 months starting from the date of entry into force of this Regulation.

            Article 2
            Member States shall take the necessary measures to ensure that the agreements and decisions referred to in Article 1 do not undermine the proper functioning of the internal market and strictly aim to stabilise the live plants and flowers sector.

            Article 3
            The geographic scope of this authorisation is the Union territory.

            Article 4

               1.   As soon as the agreements or decisions referred to in Article 1 are concluded or taken, the farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerned shall communicate those agreements or decisions to the competent authorities of the Member State having the highest share of estimated volume of production of live plants and flowers covered by those agreements or decisions, indicating the following:

                           (a)

                           the estimated production volume covered;

                           (b)

                           the expected time period of implementation.

               2.   No later than 25 days after the end of the 6-month period referred to in Article 1, the farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerned shall communicate the production volume of live plants and flowers actually covered by the agreements or decisions to the competent authorities referred to in paragraph 1 of this Article.

               3.   In accordance with Commission Implementing Regulation (EU) 2017/1185 (2), Member States shall notify the Commission of the following:

                           (a)

                           no later than 5 days after the end of each 1-month period, the agreements and decisions communicated to them in accordance with paragraph 1 during that period;

                           (b)

                           no later than 30 days after the end of the 6-month period referred to in Article 1, an overview of the agreements and decisions implemented during that period.

            Article 5
            This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 30 April 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 347, 20.12.2013, p. 671.

            (2)  Commission Implementing Regulation (EU) 2017/1185 of 20 April 2017 laying down rules for the application of Regulations (EU) No 1307/2013 and (EU) No 1308/2013 of the European Parliament and of the Council as regards notifications to the Commission of information and documents and amending and repealing several Commission Regulations (OJ L 171, 4.7.2017, p. 113).


title: Commission Implementing Regulation (EU) 2020/599 of 30 April 2020 authorising agreements and decisions on the planning of production in the milk and milk products sector

text:
                  4.5.2020

                  EN

                  Official Journal of the European Union

                  L 140/37

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/599
         of 30 April 2020
         authorising agreements and decisions on the planning of production in the milk and milk products sector
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to 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 (1), and in particular Article 222 thereof,
         Whereas:

                     (1)

                     Due to the current pandemic of COVID-19 and the extensive movement restrictions on persons put in place in the Member States, the milk and milk products sector is experiencing an economic disruption that is leading to financial difficulties and cash-flow problems for farmers.

                     (2)

                     The spread of the disease and the measures in place limit the availability of labour, compromising notably the stages of production, collection and processing of milk. This adds to the difficulties of the sector, as the processing industry needs to find alternative solutions to collect the raw milk that continues to flow while facing difficulties in their factories.

                     (3)

                     The mandatory closure of shops, outdoor markets, restaurants and other hospitality establishments has also brought the operation of the hospitality and catering industry to a halt, leading to significant changes in demand patterns for milk and milk products. Consumer demand has shifted towards essential foodstuffs to the detriment of specialty milk products. The hospitality and catering industry is traditionally responsible for the consumption of approximately between 10 and 20 %, depending on the product, of the Union milk and milk products production. As a result, there has been a drop in demand for certain products in the milk and milk products sector sold in the hospitality and catering industry. For example, more than half of the Union mozzarella cheese production is destined for the food service industry. The increase in consumption of certain milk products in the retail sector has not compensated for the drop in demand in the hospitality and catering industry.

                     (4)

                     In addition, buyers of milk and milk products in the Union and on the world market are cancelling contracts and delaying the conclusion of new ones in anticipation of further price falls. Moreover, exports of milk and milk products are affected by logistical challenges, as the start of the pandemic of COVID-19 in China has led to significant port congestion there and elsewhere. The period of increased blank sailings is expected to continue at least until June 2020, leading to containers being scarcer, rates increasing significantly and exporters seeing their shipments postponed. Third-country exports represent approximately 15 % of the total Union production, in volume, of milk and milk products.

                     (5)

                     As a result, the processing of raw milk intake is partially being diverted into bulk, long shelf life, storable products that are less labour intense, such as skimmed milk powder and butter, beyond the regular market demand. Yet, many manufacturing sites in the Union do not have the capacity to process milk into different products, and have to continue producing milk products for which there has been a sharp drop in demand.

                     (6)

                     This supply-demand imbalance is generating economic disruption to the milk and milk products sector. As a result of that imbalance, wholesale prices for milk and milk products have suffered significant drops, notably since the beginning of March 2020: 19 % for skimmed milk powder, and 14 % for butter. Skimmed milk powder and butter prices have been the first to experience a significant drop, being the products into which surplus raw milk is processed when the flow of milk exceeds demand. On the basis of skimmed milk powder and butter prices, it is estimated that the raw milk equivalent wholesale price experienced a 24 % drop between early February and the first week of April. The price drop is exceptional this spring due to the parallel emergence of demand changes linked to movement restriction measures and the seasonal peak in milk production Milk and milk products prices are expected to drop further as the volume of milk production is set to increase during the spring and summer, which is the high production season in the milk and milk products sector.

                     (7)

                     The above circumstances lead to a qualification of these events as a period of severe market imbalance.

                     (8)

                     In order to help the milk and milk products sector find a balance in this period of severe market imbalance, it is appropriate to allow for agreements and decisions of farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations. Such agreements and decisions could include a collective effort of operators to plan the production of raw milk in accordance with the changing demand patterns.

                     (9)

                     Any agreement or decision on planning of production should be temporarily authorised for a period of 6 months, coinciding with spring and summer, which is the high production season in the milk and milk products sector and should therefore have the most significant impact.

                     (10)

                     Considering that the severe market disturbance has been observed since the beginning of April 2020, the period of 6 months should start from 1 April 2020.

                     (11)

                     In accordance with the first subparagraph of Article 222(1) of Regulation (EU) No 1308/2013, an authorisation is to be given, if it does not impair the functioning of the internal market and that the agreements and decisions strictly aim at stabilising the sector. These specific conditions exclude agreements and decisions that directly or indirectly lead to partitioning markets, to discrimination based on nationality or to fixing prices. If the agreements and decisions do not fulfil these conditions, or no longer fulfil these conditions, Article 101(1) of the Treaty applies to these agreements and decisions.

                     (12)

                     The authorisation provided for in this Regulation should cover the Union territory given that the severe market imbalance is common to the whole Union.

                     (13)

                     In order for the Member States to be in a position to assess whether agreements and decisions do not undermine the functioning of the internal market and strictly aim to stabilise the milk and milk products sector, information should be provided to the competent authorities of the Member State, including the competition authorities of that state, having the highest share of estimated volume of milk production covered by those agreements or decisions on the agreements concluded and decisions taken and on the production volume and the time period covered by them.

                     (14)

                     Given the severe market imbalance and the run-up to the seasonal peak, this Regulation should enter into force on the day following that of its publication.

                     (15)

                     The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Without prejudice to Articles 152(1a), 209(1) and 210(1) of Regulation (EU) No 1308/2013, farmers, farmers' associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations in the milk and milk products sector are hereby authorised, during a period of 6 months starting from 1 April 2020, to conclude agreements and take common decisions on planning the volume of raw milk to be produced.

            Article 2
            Member States shall take the necessary measures to ensure that the agreements and decisions referred to in Article 1 do not undermine the proper functioning of the internal market and strictly aim to stabilise the milk and milk products sector.

            Article 3
            The geographic scope of this authorisation is the Union territory.

            Article 4

               1.   As soon as the agreements or decisions referred to in Article 1 are concluded or taken, the farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerned shall communicate those agreements or decisions to the competent authorities of the Member State having the highest share of estimated volume of milk production covered by those agreements or decisions, indicating the following:

                           (a)

                           the estimated production volume covered;

                           (b)

                           the expected time period of implementation.

               2.   No later than 25 days after the end of the 6-month period referred to in Article 1, the farmers, farmers’ associations, associations of such associations, recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerned shall communicate the production volume actually covered by the agreements or decisions to the competent authorities referred to in paragraph 1 of this Article.

               3.   In accordance with Commission Implementing Regulation (EU) 2017/1185 (2), Member States shall notify the Commission of the following:

                           (a)

                           no later than 5 days after the end of each 1-month period, the agreements and decisions communicated to them in accordance with paragraph 1 during that period;

                           (b)

                           no later than 30 days after the end of the 6-month period referred to in Article 1, an overview of the agreements and decisions implemented during that period.

            Article 5
            This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 30 April 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 347, 20.12.2013, p. 671.

            (2)  Commission Implementing Regulation (EU) 2017/1185 of 20 April 2017 laying down rules for the application of Regulations (EU) No 1307/2013 and (EU) No 1308/2013 of the European Parliament and of the Council as regards notifications to the Commission of information and documents and amending and repealing several Commission Regulations (OJ L 171, 4.7.2017, p. 113).


title: Commission Implementing Regulation (EU) 2020/601 of 30 April 2020 on emergency measures derogating from Articles 62 and 66 of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the validity of vine planting authorisations and the grubbing up in case of anticipated replanting

text:
                  4.5.2020

                  EN

                  Official Journal of the European Union

                  L 140/46

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/601
         of 30 April 2020
         on emergency measures derogating from Articles 62 and 66 of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the validity of vine planting authorisations and the grubbing up in case of anticipated replanting
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to 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 (1), and in particular Article 221(1) thereof,
         Whereas:

                     (1)

                     Due to the current pandemic of COVID-19 and the extensive movement restrictions put in place in the Member States, exceptional difficulties have been encountered by wine growers in all Member States. In particular, wine growers have been experiencing logistical problems and shortage of workforce which affects strongly labour intensive cultures like vines, where many manual interventions on the vineyard are necessary during the whole growing season and especially in spring when new vines are typically planted. Due to the current restrictions, wine growers encounter unprecedented difficulties to mobilise the workforce needed to carry out the day-to-day operations in their vineyards and the situation is even worse when it comes to organising the additional workforce needed for the planting of new vineyards.

                     (2)

                     Article 62(3) of Regulation (EU) No 1308/2013 provides that vine planting authorisations are valid for 3 years from the date on which they were granted. In accordance with the second subparagraph of Article 7(2) of Commission Implementing Regulation (EU) 2018/274 (2) planting authorisation are to be granted to the successful applicants not later than 1 August. This allows wine growers to prepare the soil in autumn and source the new vines, which are then typically planted during spring. Spring is the most favourable season to plant vines since with the rising temperature and the arrival of summer, the soil is getting dry so that plants planted at this moment suffer and might not take roots.

                     (3)

                     Due to the crisis caused by the pandemic of COVID-19, wine growers holding planting authorisations which expire at the latest by on 1 August 2020 are currently prevented from making use of these authorisations in the last year of their validity as planned. Due to the uncertainty regarding the length of the measures taken to address the pandemic, it is not certain that those wine growers will have the possibility to use their planting authorisations before 1 August. However, even in the case where the pandemic of COVID-19 takes a positive turn and restrictions are lifted before summer, the winegrowers will have to plant the vines during the hot season and thus at a less suitable moment of the growing cycle, under difficult conditions and at additional cost, and that at a moment when the wine sector is already suffering from unfavourable market conditions.

                     (4)

                     Therefore and to avoid the loss of the planting authorisation or a rapid deterioration of the conditions under which the planting would have to be carried out, it is necessary to allow without delay for a prolongation of the validity of planting authorisations which expire in the year 2020. All authorisation expiring in 2020 should therefore be prolonged for 12 months as of the date of entry into force of this Regulation to allow wine growers to plant the vines under favourable conditions in spring 2021.

                     (5)

                     Given the unforeseen practical and economic difficulties wine growers encounter due to the pandemic of COVID-19, they should be allowed to renounce their planting authorisation which expire in the year 2020 without incurring the administrative penalty referred to in Article 89(4) of Regulation (EU) No 1306/2013 of the European Parliament and of the Council (3) if they no longer wish to expand their vineyard area.

                     (6)

                     In respect of wine growers holding replanting authorisations granted by Member States because they have grubbed up a corresponding area of vines in accordance with Article 66(1) of Regulation (EU) No 1308/2013, the derogation granted by this Regulation should apply in a similar way as to growers having been allocated authorisations for new plantings. This would ensure that the growers are not subject to a reduction of their vineyard area since they are prevented from replanting an area they have been grubbing up due to unforeseen circumstances and labour shortage caused by movement restrictions due to the crisis caused by the pandemic of COVID-19.

                     (7)

                     Where Member States have granted a replanting authorisation to wine growers that undertook to grub up an area planted with vines at the latest by the end of the fourth year from the date on which new vines have been planted, growers can encounter in the year 2020 specific problems to do so due to movement restrictions and labour shortage. When these growers, therefore, can justify that the grubbing up was impossible for them in the year 2020 due to reasons linked to the pandemic of COVID-19, Member States should have the possibility to give them more time to implement the grubbing up by extending the deadline by up to 12 months after the entry into force of this Regulation. Member States should decide within 2 months after the submission of an application whether the extension is granted and for which duration or in case of rejection, inform the applicant of the reasons thereof. If the grubbing up is not carried out by the end of the granted extension, the wine grower should be subject to the respective penalties applicable pursuant to the second paragraph of Article 5 of Commission Delegated Regulation (EU) 2018/273 (4).

                     (8)

                     Where wine growers are allowed to delay the grubbing up of a vineyard which has been subject to anticipated replanting by Member States, both the old vineyard due to be grubbed up and the newly planted vineyard should be ineligible for support for green harvesting to avoid double financing.

                     (9)

                     The movement restrictions in place and the resulting logistical problems and shortage of workforce to carry out the manual operation on the vineyard, specifically planting of vines and grubbing-up constitute a specific problem within the meaning of Article 221 of Regulation (EU) No 1308/2013. This specific problem cannot be addressed by measures taken pursuant to Article 219 or 220 of that Regulation. On the one hand, it is not linked to an already existing market disturbance or to a sufficiently specific threat of a market disturbance. On the other hand, this specific problem is also not linked to measures for combating the spread of diseases of animals or a loss of consumer confidence due to public, animal or plant health risks, as required by Article 220 of that Regulation.

                     (10)

                     The measure should be strictly limited to what is necessary to address the current difficulties due to the pandemic of COVID-19, both as regards the scope and the period of application.

                     (11)

                     The measures should be taken in an urgent manner to avoid that wine growers are deprived of their planting authorisations or are penalised for not following on their obligation to grub up the pledged area due to the unforeseen logistical problems and shortage of workforce.

                     (12)

                     The emergency measures provided for in this Regulation should be limited to a maximum period of 12 months starting from the date of entry into force of this Regulation. This period is necessary to provide the wine growers with sufficient time to plant the new vines during the appropriate season and Member States with some flexibility in the cases where grubbing up is not possible due to the pandemic of COVID-19.

                     (13)

                     In view of the need to take immediate action, this Regulation should enter into force on the day of its publication in the Official Journal of the European Union.

                     (14)

                     The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Extension of the validity of planting and replanting authorisations expiring in the year 2020

               1.   By way of derogation from the first sentence of Article 62(3) of Regulation (EU) No 1308/2013, the validity of authorisations for new plantings granted in accordance with Articles 62 and 64 of that Regulation that have expired or will expire in the year 2020, shall only expire 12 months after the entry into force of this Regulation.

               2.   By way of derogation from the second sentence of Article 62(3) of Regulation (EU) No 1308/2013, those wine growers who hold planting authorisations that have expired or will expire in the year 2020 shall not be subject to administrative penalty referred to in Article 89(4) of Regulation (EU) No 1306/2013, under the condition that they inform the competent authorities by 31 December 2020 that they do not intend to make use of their authorisation and do not wish to benefit from the extension of their validity referred to in paragraph 1 of this Article.

               3.   By way of derogation from the first sentence of Article 62(3) of Regulation (EU) No 1308/2013, the validity of replanting authorisations granted in accordance with Article 62 and Article 66(1) of that Regulation that have expired or will expire in the year 2020, shall only expire 12 months after the entry into force of this Regulation.

               4.   By way of derogation from the second sentence of Article 62(3) of Regulation (EU) No 1308/2013, those wine growers who hold replanting authorisations that have expired or will expire in 2020 shall not be subject to administrative penalty referred to in Article 89(4) of Regulation (EU) No 1306/2013, under the conditions that they inform the competent authorities by 31 December 2020 that they do not intend to make use of their authorisation and do not wish to benefit from the extension of their validity referred to in paragraph 3 of this Article.

            Article 2
            Extension of the deadline for the grubbing up in case of the anticipated replanting of vineyards

               1.   By way of derogation from Article 66(2) of Regulation (EU) No 1308/2013, where Member States have granted authorisations for anticipated replanting to wine growers and the grubbing up is due to take place in the year 2020 at the latest, Member States may extend the deadline for the grubbing up by up to 12 months after the entry into force of this Regulation in cases where due to the pandemic of COVID-19 the grubbing up was impossible and upon duly justified application from the wine grower.

               2.   Member States shall inform the applicant within 2 months as from the submission of the application for the extension of the deadline for grubbing up referred to in paragraph 1 and where applications have been refused, applicants shall be informed of the reasons thereof.

               3.   The second paragraph of Article 5 of Delegated Regulation (EU) 2018/273 shall apply if the grubbing up is not carried out by the wine grower by the end of the extension granted pursuant to paragraphs 1 and 2.

               4.   Wine growers benefitting from the extension referred to in paragraph 1 shall not be eligible for support for green harvesting referred to in Article 47 of Regulation (EU) No 1308/2013 on either the newly planted area or the area which is due to be grubbed up.

            Article 3
            Entry into force and application
            This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
            This Regulation shall apply during a period of 12 months from its date of entry into force.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 30 April 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 347, 20.12.2013, p. 671.

            (2)  Commission Implementing Regulation (EU) 2018/274 of 11 December 2017 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings, certification, the inward and outward register, compulsory declarations and notifications, and of Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the relevant checks, and repealing Commission Implementing Regulation (EU) 2015/561 (OJ L 58, 28.2.2018, p. 60).

            (3)  Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).

            (4)  Commission Delegated Regulation (EU) 2018/273 of 11 December 2017 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings, the vineyard register, accompanying documents and certification, the inward and outward register, compulsory declarations, notifications and publication of notified information, and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the relevant checks and penalties, amending Commission Regulations (EC) No 555/2008, (EC) No 606/2009 and (EC) No 607/2009 and repealing Commission Regulation (EC) No 436/2009 and Commission Delegated Regulation (EU) 2015/560 (OJ L 58, 28.2.2018, p. 1).


title: Commission Implementing Regulation (EU) 2020/597 of 30 April 2020 granting aid for private storage for butter and fixing the amount of aid in advance

text:
                  4.5.2020

                  EN

                  Official Journal of the European Union

                  L 140/31

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/597
         of 30 April 2020
         granting aid for private storage for butter and fixing the amount of aid in advance
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to 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 (1), and in particular Article 18(2) thereof,
         Having regard to Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (2), and in particular Article 4(2)(b) thereof,
         Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (3), and in particular Article 62(2)(b) thereof,
         Whereas:

                     (1)

                     Due to the current pandemic of COVID-19 and the extensive movement restrictions put in place in the Member States there has been a drop in demand for certain products in the milk and milk products sector. The spread of the disease and the measures in place limit the availability of labour, compromising notably the stages of production, collection and processing of milk. Furthermore, the mandatory closure of shops, outdoor markets, restaurants and other hospitality establishments has brought the operation of the hospitality and catering industry to a halt, leading to significant changes in the demand patterns for milk and milk products. The hospitality and catering industry is traditionally responsible for the consumption of approximately between 10 and 20 %, depending on the product, of the Union milk and milk products production. In addition, buyers in the Union and on the world market are cancelling contracts and delaying the conclusion of new ones in anticipation of further price falls.

                     (2)

                     As a result, the processing of raw milk intake is partially being diverted into bulk, long shelf life, storable products that are less labour intense, such as skimmed milk powder and butter, beyond the regular market demand.

                     (3)

                     In order to reduce the resulting supply-demand imbalance, it is appropriate to grant private storage aid for butter.

                     (4)

                     Commission Delegated Regulation (EU) 2016/1238 (4) and Commission Implementing Regulation (EU) 2016/1240 (5) lay down rules for the implementation of the aid for private storage. Save as otherwise provided in this Regulation, the provisions of Delegated Regulation (EU) 2016/1238 and Implementing Regulation (EU) 2016/1240 should apply to the private storage aid for butter.

                     (5)

                     The amount of the aid should be fixed in advance so as to allow for a rapid and flexible operational system. In accordance with Article 4 of Regulation (EU) No 1370/2013, the aid for private storage fixed in advance should be based on storage costs and other relevant market elements. It is appropriate to set an aid for fixed storage costs for entry and exit of the products concerned and an aid per day of storage for costs for storage and financing.

                     (6)

                     For reasons of administrative efficiency and simplification, applications should only refer to butter already in storage and a security should not be required. In that context, it is appropriate to fix the period of storage.

                     (7)

                     For reasons of administrative efficiency and simplification, the minimum quantity of products to be covered by each application should be fixed.

                     (8)

                     The measures put in place to address the pandemic of COVID-19 may affect compliance with the requirements for on-the-spot checks concerning aid for private storage pursuant to Article 60 of Implementing Regulation (EU) 2016/1240. It is appropriate to provide flexibility to the Member States concerned by those measures, by prolonging the period for carrying out the entry into storage checks or by substituting them by the use of other relevant evidence, and by not requiring the carrying out of unannounced checks. It is therefore appropriate to derogate from certain provisions of Implementing Regulation (EU) 2016/1240 for the purposes of this Regulation.

                     (9)

                     In order to have an immediate impact on the market and to contribute to stabilise prices, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

                     (10)

                     The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Subject matter and scope

               1.   This Regulation provides for private storage aid for butter, as referred to in point (e) of the first subparagraph of Article 17 of Regulation (EU) No 1308/2013, hereinafter the ‘aid’.

               2.   Delegated Regulation (EU) 2016/1238 and Implementing Regulation (EU) 2016/1240 shall apply save as otherwise provided for in this Regulation.

            Article 2
            Eligible products
            In order to qualify for the aid, the butter shall be of sound and fair marketable quality and of Union origin. The product shall fulfil the requirements laid down in Section IV of Annex VI to Delegated Regulation (EU) 2016/1238.

            Article 3
            Submission and admissibility of applications

               1.   Applications for aid may be lodged as from 7 May 2020. The last date for the submission of applications shall be 30 June 2020.

               2.   Applications shall relate to products that have already been placed in storage.

               3.   The minimum quantity per application is 10 tonnes.

            Article 4
            Amount of aid and period of storage

               1.   The amount of aid shall be fixed as follows:

                           (a)

                           EUR 9,83 per tonne of storage for fixed storage costs;

                           (b)

                           EUR 0,43 per tonne per day of contractual storage.

               2.   Contractual storage shall end on the day preceding that of the removal from storage.

               3.   Aid may be granted only where the contractual storage period is between 90 and 180 days.

            Article 5
            Checks

               1.   By way of derogation from Article 60(1) and (2) of Implementing Regulation (EU) 2016/1240, where due to the measures put in place to address the pandemic of COVID-19, hereinafter ‘the measures’, the paying agency is not in a position to carry out in due time the checks referred to in Article 60(1) and (2) of that Regulation, the Member State concerned may:

                           (a)

                           extend the period referred to in the first subparagraph of Article 60(1) to carry out those checks by up to 30 days after the end of the measures; or

                           (b)

                           substitute those checks during the period when the measures are applicable by the use of relevant evidence, including geotagged photos or other evidence in electronic format.

               2.   By way of derogation from the first subparagraph of Article 60(3) of Implementing Regulation (EU) 2016/1240, where due to the measures the paying agency is not in a position to carry out the unannounced on-the-spot checks, the paying agency shall not be required to perform unannounced checks during the period when the measures are in place.

            Article 6
            Entry into force
            This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 30 April 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 347, 20.12.2013, p. 671.

            (2)  OJ L 346, 20.12.2013, p. 12.

            (3)  OJ L 347, 20.12.2013, p. 549.

            (4)  Commission Delegated Regulation (EU) 2016/1238 of 18 May 2016 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to public intervention and aid for private storage (OJ L 206, 30.7.2016, p. 15).

            (5)  Commission Implementing Regulation (EU) 2016/1240 of 18 May 2016 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to public intervention and aid for private storage (OJ L 206, 30.7.2016, p. 71).