„Short supply chains are a great opportunity for farmers who want to sell their products without intermediaries”, says Vytautas Račickas, director of UAB “Du Medu” located in Prienė district, sharing the experience gained during the implementation of two projects under the Lithuanian Rural Development 2014-2020. (RDP 2014-2020) activity area “Support for promoting short supply chains and local markets at the local level”. In order to shorten the path of food products from the producer to the consumer, the Ministry of Agriculture (ŽŪM) included support for short supply chains in the 2023-2027 Lithuanian Agricultural and Rural Development Plan. strategic plan (hereinafter – SP)
Expanded the geography of trade
“We used to sell our products in markets and local stores. Expanding the geography of trade required significant investments, – about the decision to submit an application under the RDP 2014-2020. “Support for promoting short supply chains and local markets at the local level,” says V. Račickas, director of Du Medu UAB. – We submitted the application with partners UAB “Sotu Sotu” and UAB “Medaus namai”. More than 119 thousand was allocated for the implementation of the project. euros. Depending on the activity, the support intensity was 100 or 80 percent. It was intended for the lease of commercial spaces in Vilnius and Klaipėda and for the salaries of employees. We bought the necessary equipment with our own funds. The processed products are sold not only by the project partners, but also by other small organic farms at the now created sales points.
The head of the company claims that the support is beneficial to both the applicants and the state. “We realize the production more easily, the state recovered the amount of support provided from taxes during the year. The most important thing is that our activities did not stop after the end of the project,” the interviewer emphasizes, adding that the successfully implemented project encouraged another application in the same field of activity. This time the applicant was the farm of Vytautas Račickos. “About 70 thousand was allocated. euros. The support was intended for renting shopping places and paying employees’ salaries. This time, we set up sales points for unprocessed products: various vegetables, berries – for sale. We have created an e-commerce platform ecoukis.lt“, – V. Račickas jacket.
During the implementation of both projects, 7 jobs were created.
Possibility of product delivery
UAB “Mėlynė” operating in Babtua, Kaunas district, also benefited from support in the same field of activity. The application was submitted with partners: UAB “Atrast”, which, like UAB “Mėlynė”, is a scientific company, and UAB “Sultė”. “Since the products are manufactured in accordance with the research and recommendations of scientists, and lyophilization preserves up to 99% of due to their nutritional properties, they are more expensive than similar products on the market. We have chosen an educational way of getting the product to market. This required a mobile point of sale.
We applied for support and received more than 19 thousand. euros. We used the support to purchase equipment for the mobile point of sale, purchase transportation services and pay salaries. This opened opportunities for us to organize educational events throughout Lithuania, during which we introduced our products to consumers. In the first year, “Mēlynė” organized more than 50 events, in subsequent years – 30-40. If it were necessary to finance the rent of a shopping place with one’s own funds, to pay the salaries of employees, it would be a difficult financial burden for small companies employing a few people. Therefore, it is very good that the biggest costs are compensated, – says project manager Vaidė Sakalauskienė. – As we were very often asked where to buy “Mėlynė” products when traveling around Lithuania, together with other members of the National Food Cluster, another application was submitted under the field of activity “Support for short supply chains and promotion of local markets at the local level”. In this project, the application was prepared by UAB “Eno extractum”, partners – UAB “Mėlynė” and MB “Sultė”. More than 50 thousand was allocated. euros. These funds were used to rent a shopping place in Kaunas shopping center “Dainava”, to create one mobile shopping place, and to pay employees’ salaries. Not only the members of the cluster trade there, but also other small producers who meet the requirement to sell products made only in Lithuania and from Lithuanian raw materials. An electronic store was also created during the implementation of this project Maistonamukas.lt.“
Simplified support for direct sales
Both interviewees do not hesitate – “Supporting short supply chains and promoting local markets at the local level” has been very useful for them.
Applications for those wishing to take advantage of this support will be accepted from March 18 to May 13. and from September 2 to October 31. Applicants can apply for support up to 150 thousand. euros. “Support under simplified rules is provided from the financial balances of the previous programming period, small-scale, i.e. i.e. the maximum possible amount of support for the project is up to EUR 150,000 – for the implementation of the projects”, says Nomeda Padvaiskaitė, adviser of the LEADER Program and rural development department.
For the received support, applicants will be able to create at least one trading and/or sales location. It can be a mobile marketplace, a car or online store, a place in a pavilion and/or a market. Also, they will be able to carry out trade at the places of production of products (farms), trade according to long-term purchase-sale agreements.
“Only the construction of simple structures, their reconstruction or capital repair will be supported.
The applicant will be able to build modular trading houses and move them according to the season in different places of implementation of the activity”, Ilona Javičienė, head of the Program LEADER and rural development department, mentions the possibilities and emphasizes that support is provided only for products grown on the applicant’s or partner’s property, which fall within the scope of the Treaty on European implement Annex I of the functioning of the Union.
Support from small to large projects
From May 2 to June 28 applications for support under the SP measure “Short Supply Chains (2024 I)” will be accepted. “Three short supply chain support models are financed under it,” Nomeda Padvaiskaitė presents the possibilities. – The first model aims to promote direct agricultural and food products, so the projects of small producers who, in cooperation, are able to produce at least 5 tons of production per year will be financed.
The second support model focuses on the establishment of a larger-scale realization site, when a short supply chain already covers several municipalities or several districts, and the activity is carried out by supplying products to, for example, educational institutions, companies providing public catering services. And the third support model of the largest economic scale is intended for the establishment of agricultural or food product sales networks (logistics centers). Farms and cooperatives with the highest economic capacity, capable of producing at least 25 tons of produce per year, are invited to join in order to receive support under this model. Therefore, we are already inviting all agricultural and food producers to assess their production capacity and apply for support.”
for No. 2024/06
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– 2024-03-29 12:31:35
