Tenders for small-scale food processing developments have opened

By: Trademagazin Date: 2024. 08. 13. 10:59

Applications for support can now be submitted to the “Support for the development of processing plants” announced by the Ministry of Agriculture with a budget of HUF 50 billion, which can provide financial assistance for small investments of processing plants and small producers related to food production. The support contributes to standing on more than one foot, as it offers an opportunity for progress to those agricultural producers who have sold their products as unprocessed raw materials, but in the future would like to sell them in partially or fully processed form.

With the call, businesses that typically produce their products in smaller volumes can receive up to HUF 200 million in support with less mandatory commitments and easier conditions compared to larger, more complex projects. The tenders can be submitted for a wide range of activities, in line with the most important aspirations of the given enterprise, such as the construction and renovation of buildings; for the purchase of new tools and machines; for the development of new technological systems, as well as energy modernization. In relation to developments, the fund’s support intensity is 50 percent, but this can increase to 70 percent in certain cases. Up to 25 percent of the subsidy amount, but no more than HUF 50 million, can be applied for in advance for the projects. Based on the tender, the production of food, wine, fodder, or even developments related to honey packaging and wool processing can be supported.

With the tender announced as part of its economic development interventions financed 80% from the national budget and 20% from European Union funds within the framework of the Strategic Plan of the Common Agrarian Policy, the Ministry of Agriculture is specifically targeting smaller producers, and wants to provide them with an opportunity for advancement. The policy goal is to create a more competitive production and product structure for enterprises operating in the field of domestic agriculture and food production aimed at the production of higher added value products, and to implement developments based on market demand.