Implementing regulation 2020/596 - Commission Implementing Regulation 2020/596 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 - Main contents

EN

Official Journal of the European Union

L 140/26

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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

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

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.

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;

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.