SAPARD funds have helped a significant number of companies in the ten accession states to comply with EU regulations by allowing them small grants towards renovation of facilities and the upgrading of processing and packaging equipment. In Poland, the funding has proved to be particularly popular and has been greatly oversubscribed.
"The European Commission has initially agreed to increase the financing. We are waiting for confirmation of the decision in writing," said Iwona Musial, press spokeswoman for for Restructuring and Modernisation of Agriculture (ARiMR) in Poland, who is in charge of processing applications for SAPARD.
So far the agency has reported that a total number of 30,000 companies have applied for the aid in Poland. Originally the European Commission had estimated that the number would not exceed 15,000, but a lot of the upgrading procedures the companies have had to undergo have in turn meant significant investments.
Presently the total budget for SAPARD in Poland is estimated at €260 million. So far ARiMR has helped 1,772 food processing companies to qualify for the EU regulations, and processed 1,019 requests.
Meanwhile in Romania, a total of nine companies from the meat, wine and milk processing industries are also set to benefit from €9.3 million financing from SAPARD funds in an agreement that was made with SAPARD at the end of last week.
Of the total, 47 per cent is said to come from EU funds, while the rest will come from the Romanian government and other national project beneficiaries, as set out in the fund agreement.
Reports in the Romanian national press said that the highest amount, €1.9 million, will be allocated towards the setting up of a meat processing plant in Olt county and for the upgrade of the production capacity of Facos plant in Suceava county.
So far the total number of contracts signed under SAPARD in Romania has reached 107 with total financing now running at €55.3 million. Romania has been budgeted to receive a total of €256 million in the run up to its mooted accession in 2007. However, unlike in Poland, where demand for the SAPARD funding has been driven by accession on 1 May, Romania has more time to comply with EU regulations.
SAPARD funding came into being on 1 January 2001 and is budgeted until the end of 2006. The main objective of the funds is to help the agro-food sector in the accession countries, and future accession countries, to comply with EU standards of regulation. Currently the agency has an annual budget of €520 million.