France introduces a EUR500m support program for the agri-food industry

The EUR500m scheme aims to improve efficiency at the top of the supply chain and help development for SMEs.

A strategy to boost France's agri-food sector will be unveiled soon, and a EUR500m (US$532 million) investment fund will be made available to private investors. According to a joint statement from the industry and agriculture ministries, the agri-food sector has 437,000 employment and a turnover of EUR 198 billion, making it France's largest industry. The "severe economic tensions" the agri-food sector is facing were acknowledged by the French Minister of Agriculture and Food Sovereignty.

The state will contribute EUR200m to the new fund and the agri-food sectors are struggling with a lack of investment that is hurting their ability to compete and preventing innovation and the expansion into new markets, particularly for export. The program aims to boost supply chain efficiency at the top and support the growth of SMEs. Moreover, sector expansion will be aided by increasing competition brought on by industry consolidation and investments in industrial automation.

"The state is on the side of players in the agri-food industry to strengthen the sector’s competitiveness and consolidate our food sovereignty," said Roland Lescure, France’s Industry Minister. According to the statement, in addition to the investment fund, the support program would give businesses the choice to postpone paying social and tax obligations if they so choose.