(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, in particular cheeses. 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 responsible for approximately 15 % of the Union domestic demand of cheese. 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. Cheese exports to third countries represent 8 % of total Union cheese production.

(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. Yet, many cheese-manufacturing sites in the Union do not have the capacity to process the milk into different products, and have to continue producing cheeses for which the demand has exceptionally fallen.

(3)

The cheese sector is therefore confronted with a situation of market disturbance due to a strong supply-demand imbalance. As a consequence, without measures against this market disturbance, prices of cheese in the Union are expected to fall and downward pressure is likely to carry on.

(4)

The market intervention measures available under Regulation (EU) No 1308/2013 appear to be insufficient to address the market disturbance, since they are targeted to other products such as butter and skimmed milk powder, or limited to cheeses with protected designation of origin or protected geographical indication.

(5)

The disturbance in the cheese market can be addressed by storage. It is therefore appropriate to grant aid for private storage of cheese.

(6)

Article 17 of Regulation (EU) No 1308/2013 provides for the granting of private storage aid only for cheeses benefiting from a protected designation of origin or from a protected geographical indication under Regulation (EU) No 1151/2012 of the European Parliament and of the Council (3). However, cheeses with a protected designation of origin or a protected geographical indication represent only a small share of the total Union cheese production. For reasons of operational and administrative efficiency, it is appropriate to set up a single private storage aid scheme covering all types of cheeses.

(7)

It is appropriate to exclude cheeses that are not suitable for storage.

(8)

It is appropriate to set a ceiling for the maximum volume to be covered by the scheme and a breakdown of the total volume per Member State based on their cheese production.

(9)

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 that are applicable to private storage of cheeses with a protected designation of origin or a protected geographical indication, should apply mutatis mutandis to the single private storage aid scheme established in this Regulation.

(10)

The amount of the aid should be fixed in advance so as to allow for a rapid and flexible operational system. The amount of aid should be fixed on the basis of 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.

(11)

For reasons of administrative efficiency and simplification , applications should only refer to cheese already in storage and a security should not be required.

(12)

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

(13)

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 allowing the carrying out of physical checks only on a representative statistical sample, 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.

(14)

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