European Commission Halts Private Storage Aid for Cheese on “Disproportionate Surge in Interest”

24 Sep 2014 --- The European Commission has stopped the measure for Private Storage Aid (PSA) for cheese following a disproportionate surge in interest for this measure from cheese producers in certain regions not traditionally exporting significant quantities to Russia. This move is a precautionary step to avoid the possibility of reaching the maximum volume of 155,000 tonnes so soon after the measure was opened on September 5.

Notifications for PSA volumes of Skimmed Milk Powder (SMP) and butter were much in line with expectations and the measures remain open for these products. A decision to repeal the PSA measure for cheese was published in the Official Journal today, applicable with immediate effect, see (EU) No 992/2014

Exports of cheeses to Russia in 2013 amounted to more than 250 000 tonnes (including certain fresh cheeses which are not suitable for storing and therefore not eligible for Private Storage Aid), roughly one third of total EU cheese exports. Moreover, Russia is an exclusive trading partner for cheese for Finland and the Baltic countries (about or over 90% of these countries' cheese exports) which also represents for each of these Member States around or above 1/5 of national cheese production (e.g. around 35 000 tonnes for both Finland and Lithuania). Cheese exports to Russia also represent a high share of certain other Member States cheese exports: 42% for the Netherlands (corresponding to 8% of national production), 38% for Germany (corresponding to about 2% of national production) and 43% for Poland (corresponding to less than 4% of national production).

The Delegated Regulation opening Private Storage Aid for Cheese was published on September 5, 2014.