EU funds fuel 'renaissance' in agricultural sector

The restoration of rubble walls and agro-tourism projects will be benefitting from EU funding of €5 million and €12 million respectively, Rural Affairs Minister George Pullicino said yesterday.

The financial allocation for the agriculture sector from EU funds between 2007 and 2013 amounts to €100 million.

The sector is experiencing a "period of renaissance" and, together with the subsidies, has never seen such a heavy investment, the minister added.

Priority would be given to environmental investments highlighting a shift in EU funding towards quality products and environmental improvements, rather than quantity.

Farmers and herdsmen can apply for three types of funding: to improve product competitiveness; for environmental investment and to ensure that structures are in conformity with EU standards.

One of the measures of the rural development programme involves a €13.5 million investment (€11 million from the EU and the rest from the government) for farmers and herdsman to modernise their setups and introduce new methods of production.

Breaking down the €100 million allocation, Mr Pullicino said €7 million (70 per cent from the EU) would be poured into the investment of quality products, based on fresh produce; the restoration of rubble walls would net €5 million and agro-tourism projects €12 million.

Another €7 million are being earmarked for the marketing and processing of local products.

The first call for funding would be issued in October, and applicants would be granted 50 per cent of the investment, while forking out the other half.

The growth in the agricultural sector has succeeded despite the fact that it has passed on from total protection to complete exposure to competition, Mr Pullicino said, adding however, that it was not a bed of roses.

There were problems that still had to be overcome, with some farmers being stuck in the past.

Mr Pullicino was speaking at the Meridiana Wine Estate in Ta' Qali, which benefitted from €22,000 from the 2004-2006 EU allocation - 50 per cent of its investment in three projects.

These included new tanks to raise its wine capacity; a waste water recycling plant for automatic irrigation; and a photovoltaic panels pilot project to power two floodlights on the estate all night long, said estate manger Anton Mangion. Funding for agricultural structures for 2004-2006 amounted to €7.4 million. The allocation for the improvement of processing and promotion of agricultural products was €4.6 million, Parliamentary Secretary for Public Dialogue and Information Chris Said said.

For each measure, 35 per cent came from the EU, 15 per cent from the government and 50 per cent from the applicant.