Food industry investment grant: key conditions for applicants
PRIA’s food industry investment grant helps finance investments that improve a company’s production capacity, competitiveness, energy efficiency, digitalisation or security of supply.
Who can apply for funding?
Companies that process or plan to start processing agricultural products can apply for funding. The investment must be directly related to food industry activities.
Company size affects the grant rate, eligible activities and State aid conditions. Partner and linked enterprises must also be taken into account when determining company size.
Which investments are supported?
Eligible investments may include:
- production equipment and automation;
- digitalisation and production software;
- improvements in energy and resource efficiency;
- reduction of environmental impact;
- solutions to ensure security of supply;
- establishment of a new processing facility;
- investments required to obtain certification.
Solar energy investments must also include a storage system, and capacity must match the company’s own consumption.
How much funding is available?
The grant rate depends on company size, the nature of the investment and the applicable State aid basis, and may range from 15–50% of eligible costs.
The maximum grant amount is up to 3 500 000 euros per applicant over the entire CAP Strategic Plan period.
For environmental and energy efficiency investments, the full cost of the equipment may not be eligible. In some cases, only the additional cost compared with a conventional solution is supported.
How must investment costs be substantiated?
- up to 20 000 euros: costs must be justified by market prices;
- over 20 000 and below 60 000 euros: three comparable quotations are generally required;
- from 60 000 euros: the procurement procedure must generally be conducted through the Public Procurement Register.
Thresholds are calculated excluding VAT.
When can the investment begin?
Work on the investment must not begin, and no binding commitments may be made, before the day following submission of the application.
A contract signed, an order placed or an advance payment made too early may render the cost ineligible.
How are applications assessed?
Applications are ranked according to assessment criteria. Meeting the requirements does not guarantee funding.
Points may be awarded for factors such as:
- the investment’s environmental and energy impact;
- digitalisation and automation;
- a higher own contribution;
- the location of the investment;
- the added value of production and contribution to food security;
- activities related to audits and certification.
What should you do before submitting an application?
Companies should:
- check the eligibility of the applicant and the investment;
- determine company size correctly;
- select the appropriate State aid basis;
- assess whether their own contribution and cash flow are sufficient;
- prepare comparable quotations;
- describe the measurable impact of the investment;
- avoid making binding commitments before the permitted date.
Summary
The food industry investment grant is suitable for companies planning improvements in production, technology, energy efficiency, digitalisation or security of supply.
The grant rate may be 15–50%, with a maximum grant amount of up to 3,5 million euros. Specific eligibility depends on company size, the nature of the investment, the State aid basis and assessment scores.
Before submitting an application, check PRIA’s current conditions and the information for the specific application round.