The announcement by the European Commission of state aid clearance for a “major capital investment scheme” for the food industry has been welcomed by the Minister for Agriculture, Food and the Marine, Michael Creed.
The programme involves a €200 million investment for the processing and marketing of agricultural products in Ireland.
Commenting on the funding approval, Minister Creed said: “This approval – negotiated over the last two years by my department officials – will provide opportunities for the food industry to make the significant investments required for product and market diversification.
It represents a significant response by the EU Commission, working with Ireland to mitigate the effects of a significantly challenging external market environment [such as Brexit] for the industry.
“This approval will be of benefit to the primary dairy and meat processing industries, which are classified as ‘Annex 1’ products under EU legislation.
“The Department of Agriculture – together with colleagues in the Department of Business, Enterprise and Innovation – have negotiated this approval with the European Commission over the last two years.
The approval comes under the agriculture state aid guidelines administered by DG Agri.
“The detailed scheme of grant aid for food processing to implement this approval will be developed and administered by Enterprise Ireland.”
The Minister for Business, Enterprise and Innovation, Heather Humphreys, said: “Ireland’s reputation as a source of high-quality food and drink is among our most cherished national assets.
This scheme will allow companies engaged in the primary food processing sector to pursue product and market diversification and to create greater added value.
CEO of Enterprise Ireland Julie Sinnamon said: “We welcome the announcement by the European Commission today which will provide some additional flexibility for food companies under state aid rules for capital investment.
“The scheme will support increased innovation and international competitiveness in the agriculture sector, and jobs in the regions, which will be particularly important in the context of Brexit,” she concluded.