Latvia to offer aid to implement short food supply chains

Farmers will have access to €16 million to support the operation of short food supply chains. The money will be split between two measures and applications will open early in the new year. This is the first time such a program has been implemented and interest is likely to be high, Latvian Radio reports November 1.

Short food supply chains mean that the shorter the journey from the farmer to the table, the better. The new measure, co-financed by the European Agricultural Fund for Rural Development, will support two activities: promoting short food supply chains and promoting products on the market.

A cooperative group of at least five farmers - small and medium-sized enterprises, cooperatives, processors - aiming to concentrate the availability of local products in their area can apply for support.

The aid is intended for product storage, infrastructure, the purchase of fixed assets for the first processing and packaging of agricultural products, logistics and the distribution of products, as well as promotion.

"With this measure, we want to provide an opportunity for small farmers to unite and create a common offer for local businesses, such as schools, kindergartens, local caterers providing catering services, and to market the product accordingly," says Liene Jansone, Director of the Rural Development Support Department at the Agriculture Ministry.

Support per project is up to EUR 500,000 if construction is included. If there is no construction, the support is EUR 200,000 per cooperation group. Jansone hopes for a more active participation of small producers.

How do producers see it? Guntis Gūtmanis, Chairman of the Board of the Cooperation Council of Farmers' Organizations, welcomes this opportunity.

"We see that existing food chains are working well in places, but in other places, there is often a discussion from farmers, producers, and processors about mark-ups and prices in shops. Any way we can go direct to the consumer is good for the consumer, the producer, and the climate. The sooner we get from the field to the consumer's table, the better," says Gūtmanis.

Vegetable growers are also pleased about this opportunity. This time, the focus is more on individual and small producers in the regions so that they can reach the consumer. The program would contribute to the growth of small producers, says Jānis Bērziņš, Chairman of the Board of the Association "Latvijas Dārznieks". However, much will depend on the municipalities, which will announce the procurement of products.

 

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