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“So far, some sectors have received relatively more investment support than others, leading to a disproportionate share of agricultural production in Lithuania in the cereals sector, creating little value added across the country; we create less value per hectare than EU countries.
Our aim is to change this, therefore, in the transition period from 2021 to 2022 according to the Lithuanian Rural Development 2014-2020. The program (PDR) will significantly increase support for investments in those sectors that create greater added value and that previously did not have sufficient funding and that we seek to develop strategically, ”says Agriculture Minister Kęstutis Navickas.
During these two years, a total of LTL 227.6 million will be allocated under the PDR measure “Investments in agricultural holdings”. euro support. It is estimated that, on average, almost twice as much investment support will be distributed per year as before.
To receive support, farmers themselves will have to invest at least half of all funds required for investment. This money should be spent in June 2025, so a total of up to 500 million euros is expected to be invested in new equipment, agricultural buildings, productive development, better conditions for animals and reduction of pollution.
It is estimated that 45 percent. all support funds should be allocated to dairy production. By comparison, the sector has received about a third of all investment support so far. The development of this sector is important due to strong Lithuanian processors lacking local raw materials for dairy products.
There will be a significant increase in support for horticulture, berry cultivation and horticulture, which accounted for 18%. support and investment in greenhouses (8%).
Almost a quarter of all investment support will go to the pig and poultry sectors, which have been hit by global challenges in recent years.
The Ministry of Agriculture also identifies the priorities that will be important in evaluating requests for investment support. Priority will be given to promoting production, cooperation, higher quality and added value, digital technologies. Investments in organic agriculture, reducing the use of fertilizers and pesticides, and reducing emissions of ammonia and greenhouse gases are also encouraged.
“In the last two decades, more than a billion euros have been invested in agricultural operations and around 40%. these amounts were earmarked for the cereals sector. Now, in two years, we will allocate a quarter of a billion euros to those sectors whose development in the country is insufficient and which create greater added value and meet the state’s objectives and the expectations of the population: eating healthy Lithuanian products. manufactured in an environmentally friendly way ”, says K. Navickas.
At present, Lithuania is not fully supplied and imports about half of its fruits, vegetables and pork. However, Lithuania produces around three times more cereals, beef and lamb than it needs. The country’s processors also have a shortage of milk in the local market.
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