EU FRUIT AND VEGETABLE
REGIME - AID SCHEME
The Scottish Executive wishes to encourage the horticulture
sector to maximise take-up of funds under the EU Fruit and
Vegetable Regime. Under this Regime, a recognised Producer
Organisation (PO) may be able to qualify for financial
assistance through the implementation of a structured plan
called an operational programme. The aim of an operational
programme is to improve the PO's performance and skills in
marketing, product quality and environmental considerations.
The list of crops covered by the Regime is extensive but
certain crops, most notably potatoes, are excluded.
Criteria
Briefly, in order to become recognised, a PO has to meet 2
quantifiable criteria; all POs must have at least 5 grower
members and they must meet the amount of annual turnover
required. This varies according to the number of members in the
PO, but in Scotland, England and Wales a PO with between 5 and
14 members must have a turnover of at least 3 million Euros
(roughly £1.87 million depending on exchange rate).
Operational programmes can last for 3, 4 or a maximum of 5
years and run on a calendar year basis. They must be financed
in the first instance by an operational fund - an account set
up by the PO to hold contributions from its members based on
the value or volume of turnover of products for which
recognition has been granted. The programme will comprise a
number of elements, some of which are compulsory, aimed at
improving the business while employing environmentally sound
cultivation practices and the management of waste materials.
The programme should be regarded as an important part of the
POs forward business plan.
Funding
European Community financial assistance is paid directly
into the PO's operational fund at the rate of 50% of approved
expenditure or 4.1% of marketed production whichever is lowest.
POs may claim assistance payments either quarterly in advance,
quarterly in arrears or they may claim the total assistance in
arrears in January of the following year.
Benefits?
Apart from the obvious benefit of EU funding, recognition of
a PO with a successful operational programme is likely to lead
to better co-operation between individual growers, a stronger
market presence, better product quality, more environmentally
friendly practices and an enhanced business performance.
Further information
The above is only a brief résumé of how the EU Fruit and
Vegetable Regime rules operate. Completed applications need to
be submitted by 15 September for programmes commencing the
following January. For further information please contact
Plants, Horticulture and Potatoes, Pentland House, 47 Robb's
Loan, Edinburgh, EH14 1TY (Tel : 0131-244-6336; Fax :
0131-244-6509 e-mail address
PHP@scotland.gsi.gov.uk);