The European Commission has approved a €200 million investment scheme for the processing and marketing of agricultural products in Ireland.

The scheme will run until the end of 2025.

Speaking after the announcement of the commission’s decision, Commissioner for Trade Phil Hogan said the scheme “will provide grant-aid to SMEs [small and medium enterprises] and large companies in the Irish agri-food sector, which employs more than 173,000 people and accounts for 10% of the value of total Irish goods exports”.

I am confident that the scheme approved today [Tuesday, February 4] will encourage innovative investments in this important sector which would otherwise not have occurred.

“This scheme must also be seen through the prism of Brexit and the need for the sector to adapt to the new situation and to improve its resilience and become more diversified through the identification of new markets,” Commissioner Hogan added.

According to a statement from the commission, the scheme “reflects the wish of the Irish authorities to support long-term investments in the primary food processing sector in order to make it stronger and more resilient, by [adding value] through greater product and market diversification”.

The statement added that market research shows that there is potential for growth in the sector, in particular on global markets.

The scheme is also apparently designed to contribute to the EU’s objectives of “ensuring viable food production and promoting intelligent and sustainable growth”.

The scheme’s approval reflects the commission’s conclusion that the initiative is in line with EU agricultural state aid rules.