The Ulster Farmers’ Union (UFU) has said the £46 million Agri-Food Investment Initiative (AFII) is a “very positive development” for the industry with benefits for rural communities and the farming sector.
Food and drink processors of all sizes are eligible to apply for the scheme, which was officially opened yesterday (Tuesday, July 23) by Economy Minister Conor Murphy.
The Initiative, developed by Invest Northern Ireland, has been designed to help improve the overall competitiveness and productivity of the agri-food and drink processing sector in Northern Ireland.
The initiative will run until December 31 of next year.
Minister Murphy said: “Agri-food processing makes a significant contribution to local communities throughout the region, and especially to rural communities.
“By targeting support to this sector, this scheme will promote regional balance. The capital investment will help companies adopt greener technologies, and so contribute to our net zero targets. Importantly, the scheme also aims to increase the sector’s productivity.”
The scheme aims to promote regional balance and increase the sector’s productivity as well as helping companies adopt greener technologies, and so contribute to Northern Ireland’s net zero targets.
Chief executive of Invest NI, Kieran Donoghue, said: “The aim of this new Initiative is to improve the overall competitiveness of Northern Ireland’s agri-food and drink processing sector.
“To this end, we are particularly seeking projects which are innovative and demonstrate how they will improve the productivity and sustainability of the business.
“The Initiative is now open to applications from all eligible agri-food and drink processors in Northern Ireland, and I encourage businesses in the sector to avail of this significant opportunity to invest for future growth.”
As well as providing efficiency and productivity benefits directly to the business, Donoghue said investments through this Initiative are expected to have a positive impact on the agri-food supply chain across rural areas.
Agri-Food Investment Initiative
AFII is open to all Invest NI clients and new clients operating within one or more of the following food and drink processing sectors:
- Meat processing (beef, sheep, pig and poultry);
- Dairy, milk and milk products;
- Potatoes;
- Cereals/arable crops, fruit and vegetables;
- Bakery, snacks and convenience;
- Drinks and beverages;
- Animal feed;
- Cold stores (industrially de-rated only).
The maximum aid intensity that can be granted to small businesses is 35% of the eligible investment costs and the minimum project size is £300,000.
For medium businesses, the maximum aid intensity that can be granted is 25% of the eligible investment costs and the minimum project size is £1,000,000.
The maximum aid intensity that can be granted to large businesses is 20% of the eligible investment costs.
However, the aid intensity for any individual project will be limited to the minimum support required to implement the project, compared to the counterfactual scenario in the absence of aid. Minimum project size is £1,000,000.
Putting NI on ‘more level footing’
UFU president, William Irvine, said the union is supportive of AFII as it will put Northern Ireland on a “more level footing” with competitors in the Republic of Ireland and Britain.
“It will also have positive knock on affects for our rural communities and farming industry,” he said.
“Our local agri-food and drink industry is Northern Ireland’s largest manufacturer, supports approximately 113,000 jobs and feeds some 10 million people across the globe.
“The success of which is built upon our food producers including our farmers, who produce nutritious food to the highest environmental, animal health and welfare, and food safety standards.”
Irvine added that the scheme will strengthen and further develop Northern Ireland’s local supply chain helping to ensure a bright and sustainable future benefiting consumers and all involved in the industry.
