Commission Regulation (EC) No 340/2006 of  24 February 2006  determining the aid referred to in Council Regulation (EC) No 1255/1999 for the private storage of butter and cream and derogating from Regulation (EC) No 2771/1999
Date: 2006-02-24
Institutions: European Commission
Subjects: butter, cream, private stock, storage premium

25.2.2006

EN

Official Journal of the European Union

L 55/7

COMMISSION REGULATION (EC) No 340/2006

of 24 February 2006

determining the aid referred to in Council Regulation (EC) No 1255/1999 for the private storage of
butter and cream and derogating from Regulation (EC) No 2771/1999

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(6)

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 1255/1999 of
17 May 1999 on the common organisation of the market in
milk and milk products (1), and in particular Article 10 thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

Article 34(2) of Commission Regulation (EC) No
2771/1999 of 16 December 1999 laying down
detailed rules for the application of Council Regulation
(EC) No 1255/1999 as regards intervention on the
the
market
amount of aid for private storage referred to in Article
6(3) of Regulation (EC) No 1255/1999 is to be fixed
each year.

in butter and cream (2),

stipulates

that

The third subparagraph of Article 6(3) of Regulation (EC)
No 1255/1999 specifies that the aid shall be fixed in the
light of storage costs and the likely trend in prices for
fresh butter and butter from stocks.

Regarding storage costs, notably the costs for entry and
exit of the products concerned, the daily costs for cold
storage and the financial costs of storage should be taken
into account.

Regarding the likely trend in prices, consideration should
be given to the reductions of the butter intervention
prices envisaged in Article 4(1) of Regulation (EC) No
1255/1999 and the resulting decreases expected for
market prices for fresh butter and butter from stocks
and higher aid should be awarded for applications for
contracts received before 1 July 2006.

To avoid excessive applications for private storage before
that date, an indicative quantity and a communication
mechanism,
enabling the Commission to establish
when this quantity is reached, need to be introduced
for the period ending on 1 July 2006. This indicative
quantity should be fixed taking into consideration the
quantities covered by storage contracts in past years.

Article 29(1) of Regulation (EC) No 2771/1999 stipulates
that the entry into storage must take place between 15
March and 15 August. The current situation on the
butter market justifies bringing the entry date for butter
and cream storage operations in 2006 forward to 1
March. Consequently a derogation from that Article
should be introduced.

(7)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Milk and Milk Products,

HAS ADOPTED THIS REGULATION:

Article 1

1.
The aid referred to in Article 6(3) of Regulation (EC) No
1255/1999 shall be calculated per tonne of butter or butter
equivalent for contracts concluded in 2006 on the basis of
the following elements:

(a)

for all contracts:

— EUR 17,64 for fixed storage costs,

— EUR 0,31 for the costs of cold storage for each day of

contractual storage,

— an amount per day of contractual storage, calculated on
the basis of 90 % of the intervention price for butter in
force on the day the contractual storage begins and on
the basis of an annual interest rate of 2,50 %;

and

(b) EUR 103,20 for contracts which have been concluded on
the basis of applications received by the intervention agency
before 1 July 2006.

The intervention agency shall register the date of receipt
2.
of the applications to conclude a contract as referred to in
Article 30(1) of Regulation (EC) No 2771/1999 as well as the
corresponding quantities and dates of manufacture and the
place at which the butter is stored.

(1) OJ L 160, 26.6.1999, p. 48. Regulation as last amended by Regu-

lation (EC) No 1913/2005 (OJ L 307, 25.11.2005, p. 2).

(2) OJ L 333, 24.12.1999, p. 11. Regulation as last amended by Regu-

lation (EC) No 2107/2005 (OJ L 337, 22.12.2005, p. 20).

3.
The Member States shall inform the Commission no later
than 12 noon (Brussels time) of each Tuesday of the quantities
covered during the preceding week by such applications.

L 55/8

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Official Journal of the European Union

25.2.2006

is communicated by the Commission to the
Once it
4.
Member States that
the applications have reached 80 000
tonnes Member States shall inform the Commission, each day
before 12 noon (Brussels time), of the quantities covered by
applications of the preceding day.

Article 2

By way of derogation from Article 29(1) of Regulation (EC) No
2771/1999, entry into storage in 2006 may take place from
1 March.

Article 3

5.
The Commission will suspend the application of para-
graphs 1(b) and 4 once it has observed that the applications
referred to in paragraph 1(b) have reached 110 000 tonnes.

This Regulation shall enter into force on the day following 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, 24 February 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission