Polish agro-food gets €1.8 billion
total investment of €1.8 billion in Poland's food processing and
agricultural sectors over the next two years, in a move that is
likely to push the country towards becoming one of the leading food
producers in the region.
Poland's Sectoral Operational Programme for Restructuring and Modernisation of the Food Sector and Rural Development includes a broad range of ambitious rural development measures. The EC says that the focus is on the modernisation of the farming sector, improvement of the processing sector, and the encouragement of rural development. The European Union's contribution amounts to €1.192 billion for the period 2004-2006, and will be complemented by national public funding of €591 million.
Franz Fischler, Commissioner for Agriculture, Rural Development and Fisheries, said "This programme sets ambitious objectives to build a more competitive agriculture and food sector in Poland, to develop rural areas, improve incomes and create job opportunities for those living there. We must ensure that we continue the momentum so that the programme can be up and running quickly".
The EC says that the priorities in the programme are to be defined by the Polish authorities. This means that the Polish authorities decide on the projects to benefit from EU support on the provision that they comply with EU regulations for transparency.
The EU funding will be divided up into three main categories, encompassing changes to the food sector, sustainable rural development and technical assistance.
Support to Changes and Adjustments in the Agricultural and Food sector, will attract an EU contribution of €839 million. This aims to achieve greater competitiveness and profitability in the food sector, focusing on improving the efficiency and bringing products closer to consumer demands as well as raising hygiene and environmental standards. Premiums will also be offered to young farmers and funding for training measures and extension services will aim to help farmers adapt to the Single Market and enhance their management practices.
Sustainable Development of Rural Areas will be awarded € 335 million for a wide range of measures to respond to specific rural circumstances. This will include funding for the regulation of water conditions and other land management issues as well as investments in farming diversification.
Finally the funding will also include €18 million towards Technical Assistance which will be used to facilitate the operation of the programme as a whole.
Poland, which is currently the largest consumer market in Central Europe, has been tipped to be one of the leading countries for food production within the EU. Currently the agro-food sector remains fragmented, compared to other western European economies, but as rapid consolidation and ivestment occurs, the market is predicted to become a major supplier of a variety of foodstuffs throughout the Europe Union and eastern Europe.
