Scope and Objectives

Investments in the Processing and Commercialization of Agricultural Products come under point 3.3.1 of the PDR2020, with the aim of promoting the expansion and renewal of the agro-industrial production structure, boosting value creation, innovation, quality and food safety, the production of tradable goods, as well as the internationalization of this sector and the preservation of the environment.

Incentive and Financing Rate

Non-repayable subsidy (aka non-repayable grant) up to a maximum eligible investment of 1 million euros. When the investment is higher, the support will be automatically reduced and distributed proportionally among the various investment items.

The following support rates are applied to the eligible investment:

  • Base rate of 20%, or 30% if the investments are located in less developed regions.
  • Increases (cumulative):
    • +10% for projects by Producer Organizations or Producer Groups (OP/AP);
    • +20% for projects resulting from a merger of POs or PAs;
    • +5% within the scope of the European Innovation Partnership (EIP).

Eligible Expenditure [200.000€ to 4.000.000€]

  • Construction and improvement of real estate:
    • Fencing and land preparation;
    • Buildings and other constructions directly linked to the activity;
    • Adaptation of existing facilities related to the investment.
  • Purchase or lease of new machinery and equipment:
    • New machinery and equipment;
    • Internal transportation equipment, cargo handling equipment, boxes, pallets (lifespan of more than 1 year);
    • Cool boxes, cold storage units and transport tanks;
    • Social equipment required by law;
    • Automation of equipment that already exists in the unit;
    • Equipment that is not directly productive.
  • Relocation costs, when changing the location of an existing unit;
  • General expenses:
    • In the field of energy efficiency and renewable energies;
    • Marketing and branding plans;
    • Industrial property;
    • Diagnostics and audits;
    • Feasibility and monitoring studies;
    • Architectural and engineering projects associated with investments.

Implementation of Operations

6 to 24 months from the date of issue of the acceptance agreement.

Submission of Applications

Announcement coming soon.

Important notes

Applications for investments in olive processing structures in the area of influence of the Alqueva Multipurpose Development will not be accepted.

Budgets are not required for investments in photovoltaic panels. Support will be granted in the form of simplified costs.

Construction work may not exceed 35% of total eligible expenditure, and must fall into one of the following situations:

i. Replacement with a modern building when the existing one is more than 30 years old;

ii. In-depth renovation, considering as such a renovation whose cost at least 50% of the value of the resulting new building.

The machinery and equipment to be applied for must increase production capacity by at least 25% or fundamentally change the nature of production or the technology used.