In consultation put the draft ministerial decision regarding the provision of financial incentives to create new rural cooperatives throughout Greece
That measure, EUR 25 mil. Euro, aimed at new groups of producers and producer organizations officially recognized after the April 26, 2016 and belong to the category of Very Small, Small and Medium Enterprises.
By decree defines the procedure, documents required and the criteria for the recognition of groups and producer organizations essentially opens the way for establishment of small rural cooperative shapes even with five producers, the goal of which are to enhance the negotiating the market’s ability to provide financial support to fund their operating costs.
This measure is aimed at producers organization in groups or organizations in agriculture that will help them to jointly tackle the challenges of the market, to expand the number of potential buyers and reduce per producer production costs which will achieve by:
The adapting production and products to market requirements.
Jointly placing goods on the market, including preparation for sale, centralization of sales and supply to bulk buyers.
Establishing common standards for information concerning production in particular with regard to harvesting and availability.
Reduce production costs by sharing logistics infrastructure.
Develop business skills and marketing organization and facilitation of innovation processes.
Under this measure support the formation of producer groups and producer organizations by providing aid for the first years of operation.
The aid shall be paid annually in the form of support amount (flat rate) which is a percentage of the annual salable value of the product producer group or a producer organization.
The newly created entities can be supported financially by a flat rate for the first 5 years of operation. Prerequisite is to develop a business plan for five years that could include actions to reach new markets, certification, promotion and promotion, investment in equipment and infrastructure, etc.
They will take their first year of operation to 10% of their turnover up to EUR 100,000 to cover their operating expenses. For the next four years the support amounts will decrease annually by 2 percentage points.
