A multi-million pound capital investment scheme has opened to support processors in the north’s burgeoning agri-food sector, which is currently worth £8 billion and supports 113,000 jobs.
The Agri-Food Investment Initiative (AFII), launched by Economy Minister Conor Murphy and Invest NI, aims to enhance the economic performance and competitiveness of the food and drink sector through financial support for transformative capital investment over the next four years.
Open to small and medium-sized businesses in the food and drink processing sectors, such as meat, dairy, crops, bakery, snacks, convenience, drinks, animal feed, pet food and industrially de-rated cold stores, the scheme is about encouraging further innovation, boost productivity and modernise the industry.
And while £46 million has been set aside for the AFII, it is anticipated that it will pump-prime another £300m in investments - just as a similar scheme in the Republic cost €100m to run but brought forward a total economic boost of €420m.
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.”
He added: “We’ve had complaints over many years, justifiably, that the agri-food sector wasn’t being supported in the way other parts of the private sector were, so this is a significant contribution which I know has been broadly welcomed by the sector.
“This will help to start shifting the dial on productivity. It’s not about doing away with jobs, but about creating a more skilled and better-paid workforce.”
Grainne Moody, director of food and drink at Invest NI, said: “In simple terms, businesses can go on our site to check their eligibility, and then go through the application process.
“This will be a game-changer for the sector, where traditionally productivity has been lower here than elsewhere in the UK and the Republic.
“People aren’t going to lose their jobs as a result of this scheme, but will be upskilled and redeployed elsewhere in the business, almost always on better levels of wages.”
Michael Bell, executive director at the Northern Ireland Food & Drink Association (NIFDA), called the scheme transformative, adding: “There are two things our customers want from us - better value-for-money food and the sector to be much more sustainable. Both of those things need investment, and this is what this scheme is all about.
“We are a massively important sector, making up a fifth of the region’s entire private sector. We operate in what I call the ‘eating eco-system’, where we’re buying 99% of everything coming off our farms, turning into something that people want to buy and eat, and then we give it to the retailers to sell to you.”
Invest NI chairman John Healy added: “This is a start in unlocking the potential in the agri-food sector. It will also provide a model for future programmes in sectors such as manufacturing and other parts of the economy where there is potential for productivity improvement.
“It’s been quite a journey to finally get this scheme launched. The sector has been calling for this for a long time, and it is incumbent on us to demonstrate that this is what we should be doing as an investment agency.”
Due to state aid restrictions, firms operating in primary agriculture and horticulture, fish processing, aquaculture and bio-based fuels are not eligible to apply for AFII grants (full details on eligibility, available support and how to apply is available at https://bit.ly/3zVLaW4).
