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Everything you always wanted to know about CHAFEA promotional programmes
In Atlas Marketing Studio, as experts with experience since 2010 in international promotion programmes launched by the European Union’s CHAFEA Agency, we want to clarify the basic concepts about the program of Promotion of agricultural products. The aim is to give answers about agri-food promotion CHAFEA. Moreover, to encourage future beneficiaries to participate in this programme which is, at this moment, one of the best opportunities to get funding in international promotion.
This programme of international promotion of agro-food products is subsidized with European funds, having allocated more than 200 million in the last call in 2019.
Let’s see what this grant from the European Union’s CHAFEA agency consists of in more detail.
1. Main definitions and concepts of agri-food promotion CHAFEA
1.1 What are the programmes supported by CHAFEA?
To answer this question properly you must first answer the question, What is CHAFEA? Well, it is the European Union’s Consumers, Health, Agriculture and Food Executive Agency. That is to say, it is responsible for administering around 200 million euros in subsidies for the promotion of agri-food products inside and outside Europe.
CHAFEA manages 4 types of grant areas: Consumer Programme (helping citizens to enjoy their rights as consumers), Health Programme (improving the sustainability of health systems), training for safe food (ensuring a high level of food safety and promoting a harmonised approach in the food industry) and the one that concerns us, the agri-foodstuffs promotion programme.
The latter programme focuses on increasing the recognition of agri-food products. It also aims to increase their market share both on the internal market (within the European Union) and externally in third countries such as China, Japan, USA, etc.
It is an incredible opportunity to make known the enormous quantity of quality agro-food products that we have in our own country. In this way, our production standards are given the value they deserve.
Programmes should include a strategic plan, i.e. a joint plan of operations where, depending on the target markets and the theme of the programme, everything that is planned to be done in terms of promotion will be detailed throughout its implementation. This series of actions includes
Actions
- Advertising campaigns in the press, radio, internet, television,
- Point of sale promotions,
- Public relations campaigns,
- Attendance at exhibitions or fairs
- Digital promotion
These actions can include B2B or B2C promotional tactics.
As published on the official CHAFEA website, a promotional programme will aim to
“To highlight the specific characteristics of agricultural production methods in the Union, in particular in terms of food safety, traceability, authenticity, labelling, nutritional and health aspects, animal welfare, respect for the environment and sustainability, and the characteristics of agricultural and food products, in particular as regards their quality, taste, diversity or traditions”.
(Source: CHAFEA)
At Atlas Marketing Studio we have been working on the on-site execution of promotional programmes and strategic planning for a decade. We have seen first-hand the enormous impact these programmes have on increasing sales for the agents who participate in them.
They can be applied for individually or jointly, but what difference does it make?
1.2 What is the difference between the Simple and the Multi programme?
The main difference is in the number of countries involved. In other words, in a simple programme, different organisations from the same country can present a joint proposal for a campaign to promote their agri-food products. We continue to develop the answers about agri-food promotion CHAFEA.
On the other hand, the multiple programme is when different organisations, but from different countries, join forces to carry out this international promotion. There are many advantages to doing this together in order to benefit from these European funds. We therefore advise you not to be afraid of partnering with international organisations whose interests are aligned with your own. On this subject we will go into detail in another article later on, which will be especially aimed at showing the advantages of association with other institutions abroad.
In both cases, both Simple and Multis programmes, the objective is to promote the agri-food product(s) under a single theme, a single brand, a single identity that represents them and benefits everyone equally. Therefore, both the single and the multiple programmes must be understood as teamwork. An expert team in international promotion guarantees the success of this programme with the European Union.
1.3 Is there a minimum programme size required to participate?
From the above statements one can ask this other question; how big does the programme have to be if different agencies join?
The answer is simple, there is no limit in terms of budget. However, the campaign must last at least one year, with a maximum duration of 3 years to be eligible for European funds.
That’s why so many funds are allocated for international promotion by the European Union. That is why it must be given the importance it deserves, because the size of the campaigns and their impact are at the highest level of international promotion.
The Atlas Marketing Studio team has presented international promotion projects with budgets of different sizes. The last of them of several million euros (both approved and getting the 80% subsidy from CHAFEA). As a data we emphasize that in the last call the smallest program presented by Atlas team and approved for 3 years was of an amount of 3.248.080 euros, and the biggest one of 3.648.080 euros.
Of course you have to follow a series of rules and justifications to be able to apply, so the following question arises.
1.4 What are the new rules of participation?
Next answers about agri-food promotion CHAFEA. Each year the European Union’s Executive Agency for Consumers, Health, Agriculture and Food (CHAFEA) publishes a set of standards that usually follow the same framework.
It consists of a rather dense document of more than 50 pages where each point is described in detail. It is a guide to be able to present an international promotion programme and that both the programme and the body presenting it are valid.
At Atlas we have tried to facilitate this whole process and have summarised this document in order to improve its understanding and save the precious time it takes to read and apply it.
To download it simply click on the following link ? https://atlasmarketingstudio.com/chafea/
1.5 Are there any examples of success stories?
In order to believe, one must often see and verify, and even more so in projects of such importance. In the official page in English of the European Union where all the documents related to CHAFEA are published, you can find some success stories (available for direct download) of these European Union programmes subsidized with funds for international promotion.
These are examples of funded and implemented projects where you can see clear examples of actions carried out and budgets used.
2. Eligibility of CHAFEA on agri-food promotion programmes
2.1 What are the most important eligibility criteria?
We continue to give answers about agri-food promotion CHAFEA. In this case with regard to the organisation, the following requirements must be met according to the Executive Agency for Consumers, Health, Agriculture and Food (CHAFEA)
Requirements according to CHAFEA
- Commercial or interbranch organisations established in a Member State or at Union level and representative of the sector(s) concerned in that Member State or at Union level.
A trade or interbranch organisation shall be deemed representative where it accounts for at least 50% as a proportion of the number of producers or 50% as a proportion of the volume or value of marketable production of the product(s) or sector(s) in question in the Member State concerned at Union level; lower percentages may be accepted, however, where justified or in the case of an interbranch organisation recognised by the Member State.
- Groups of producers and processors active in geographical indications
- Producer organizations or associations of producer organizations recognized by a Member State.
- Agri-food bodies involved in a public interest mission responsible for promotion. These bodies must be legally established in the Member State concerned at least two years before the date of the call for proposals. They must be representative of the product/sector by having representatives of the product/sector among their members (with the exception of programmes carried out after a loss of consumer confidence).
Source: (CHAFEA)
Only applications from entities established in EU Member States are eligible.
With regard to the programme, the promotion of quality schemes covers PDO/PGI and TSG, Protected Designation of Origin, Protected Geographical Indication and Traditional Speciality Guaranteed respectively.
Main conditions
As fundamental requirements, the campaign must have the EU logo on the organic production method. The EU OR logo in the case of outermost regions and national quality projects, provided that the images respect the rules of origin. As expected, it is stipulated that the proposing organisation must have the technical, financial and professional resources to carry out the programme.
But don’t panic, it sounds complicated, but it’s not at all! In fact, if you decide to take the step, we can help you diagnose whether you can be an eligible body.
Once you have seen where the campaigns should go and the characteristics of the organizations, you have to see what kind of products can be promoted or not.
2.2 What kind of agri-food products are eligible?
We continue with the answers about agri-food promotion CHAFEA. Each year the agency publishes a document reflecting which agri-food products are of particular importance and therefore receive a more favourable evaluation when choosing for international promotion campaigns.
This does not mean that if your agri-food products do not meet these criteria, you cannot be selected. In fact, the products that can participate in these European Union programmes with international promotion funds are, as the CHAFEA agency itself says, those published in Annex 1 of the “Consolidated Version of the Treaty on the Functioning of the European Union” minus tobacco.
A summary of all this can be the section that CHAFEA has listed about the products, although it is not as complete as the previous one, but it is a little clearer.
Eligible products
The following processed products: beer, chocolate and related products, bread, pastries, cakes, confectionery, biscuits and other bakery products, beverages based on plant extracts, pasta, salt, natural gums and resins, mustard paste, sweet corn, cotton.
Spirits with a protected geographical indication
Wine with a designation of origin or a condition for a protected geographical indication and wine with an indication of the wine grape variety; in the case of simple programmes, wine will be associated with one or more other products
Fishery products if they are associated with one or more products.
Source: (CHAFEA)
There are also special cases that have their own rules. One example is that of wine that must have a Designation of Origin, a Protected Geographical Indication or an indication of the variety of grapes used in winemaking. In addition, they must be accompanied by the promotion of another agri-food product in the case of Simple Programmes. For example, wine and cheese together could be eligible for the CHAFEA international promotion funds programme on the internal market, however, only wine if it could be considered for a promotion programme in third countries.
For the internal market, as far as spirits, wine and beer are concerned, promotion is limited to information on the quality system and responsible consumption of these drinks.
Fishery and aquaculture products are also eligible if they are included in the above-mentioned Annex I Regulation (EU) No 1379/2013. In addition, like wine, they must be associated with another agri-food product.
Tasting and sampling are allowed if these activities are ancillary to and support information measures on quality and organic production method.
2.3 Can I participate if I am a private organisation?
This is one of the most frequently asked questions and, if you are not within the above requirements, the answer is no.
CHAFEA is dedicated to help the international promotion of agri-food products of a whole macro sector, the programmes were designed for generic product campaigns. However, as mentioned by CHAFEA “In certain cases, it is not excluded that some of the eligible proposing organisations may register as private companies”.
In order to meet this requirement, a private company must be considered as a group under Regulation (EU) No. 1151/2012 and be eligible for the European Union programme.
3. Funding of CHAFEA
3.1 What are the financing ratios?
From the following answers about agri-food promotion CHAFEA goes on to say that the ratios are differentiated according to the number of countries participating and towards which market it is directed. For simple programmes with organizations from the same country, 70% of the total cost is financed by European funds, and if it is a multi-country programme for the internal market, it reaches 80%.
On the other hand, if it is a single or multiple programme or if it is aimed at third countries, i.e. outside the countries of the European Union, 80% of the total cost of the programme is financed. Up to 85% can be provided if the programme targets countries which have been affected by serious market disturbances.
A further 5% can be added for beneficiaries in Member States receiving financial assistance. The rest of the cost of the programme will be provided in full by the beneficiary organisations.
Another important point to take into account is that no additional co-financing can be received from the State, i.e. no other grants are complemented by CHAFEA.
3.2 What are the eligible costs?
The costs are borne by the organisation during the implementation of the programme. They are then subsidised by the international promotion funds of the European Union programme. Justification is done on an annual basis, and once justified, a period of rectification is carried out. It ends with the return of the corresponding part to the beneficiaries. The following categories are eligible for CHAFEA funding.
“Costs related to an advance guarantee provided by a bank or financial institution and submitted by the proposing organisation”.
“Costs related to external audits where such audits are necessary to support requests for payment.
“Personnel costs limited to salaries, social security charges and other costs included in the remuneration of staff assigned to the implementation of the programme.
“Value added tax where it is not recoverable under applicable national VAT legislation and is paid by a beneficiary other than a taxable person.
“The costs of studies to evaluate the results of promotion and information measures”.
“Eligible indirect costs are determined by applying a flat rate of 4% of the total eligible direct personnel costs of the proposing organisation”.
Source: (CHAFEA)
Conclusion
Once the answers about agri-food promotion CHAFEA have been completed, it can be said that the European Union programme of information and international promotion orchestrated by the CHAFEA Agency represents an unparalleled opportunity to obtain the necessary funding to meet our objectives. The most important is to increase the market share through international promotion. It is a tedious and very technical process for someone who is seeing it for the first time and we always recommend having the support of expert personnel so that the investment in it is successful.