Special Report No 01/2013: Has the EU support to the food-processing industry been effective and efficient in adding value to agricultural products?

Abstract:

As part of the EU’s rural development policy grants are made available to enterprises that process and market agricultural products, which should also result in improving the competitiveness of the agricultural sector.

The Court’s audit examined whether the EU support had been effective and efficient in this respect, but found that Member States do not direct the funding to projects for which there is a demonstrable need for public support. Without this, the measure risks becoming a handout — a general support to enterprises investing in the food-processing sector — with the attendant risks of distortion of competition and inefficient use of scarce public money.

The Court provided recommendations that should allow the Commission and the Member States to remedy the weaknesses mentioned.

• Primary Source

ECA: Special Report No 1/2013: Has the EU support to the food-processing industry been effective and efficient in adding value to agricultural products? [PDF] http://www.eca.europa.eu/Lists/ECADocuments/SR13_01/SR13_01_EN.PDF

ECA: Press Release, 10.04.13: Food-processing subsidies: “no proof of added value” say EU Auditors http://www.eca.europa.eu/Lists/ECADocuments/INSR13_01/INSR13_01_EN.PDF

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