Would extra funds help your business to grow?

Grants of $15,000-$200,000 are available for food processing projects. The Australian government has opened the applications for Round 5 of its Food Processing in Regional Australia Program (FPRAP). The government is providing $12 million over four years to foster the passage of new products into markets and to facilitate regional growth in the agri-food industry. This program is aimed at small to medium-sized enterprises that are engaged in or intend to engage in the value-adding of food produce (eg, processing/packaging) and marketing activities (either directly or by contract).

Currently about 40% of all food processing in Australia takes place in regional areas and the government is keen to ensure that this continues. The FPRAP is aiming to encourage value-add before the product leaves the regional area. This will keep regional areas more vital and improve local employment levels and prosperity.

The program will contribute up to half of the eligible project costs. The applicant must be able to match the amount of the grant with funds (or equivalent) of their own. It is worth paying very close attention to the assessment criteria because not everyone meeting the criteria receives a grant. The grant program is discretionary and meeting the assessment criteria does not guarantee funding.

The guidelines have been modified slightly for Round 5 and now small to medium-sized agri-businesses located in inner-regional locations may be eligible. However, one of the main criteria is still the degree to which the project will have a positive impact on a rural or regional community.

Some successful applicants from previous rounds in FPRAP include:

• Margaret River Free Range Eggs, Margaret River - $200,000. Margaret River Organic Eggs will use its FPRAP grant to purchase and commission grading and packaging equipment for certified organic eggs.
• Bushmin Farmed Rabbits, Mallala - $24,556. Mallala-based company Bushmin Farmed Rabbits will use its FPRAP grant to establish a smoking room and purchase vacuum-packing equipment for producing value-added rabbit meat products, including ready-to-eat smoked rabbit and rabbit ham.
• Covino Farms Produce Pty Ltd, Longford - $200,000. Covino Farms Produce will use its FPRAP grant to establish a vegetable processing line for producing a range of high quality, pre-packaged, ready-to-eat salads and vegetables.
• B-d Farm Paris Creek Pty Ltd, Meadows - $200,000. B-d Farm Paris Creek will use its FPRAP funding to buy, install and commission new equipment to process organic, biodynamic milk into hard and Swiss cheeses for the domestic and export markets.
• Northern Rivers Brewing Company, Alstonville - $36,348. Northern Rivers Brewing Company will use its grant to begin producing premium, natural beers in mini-kegs, creating a point of differentiation and increasing the product's marketability to wholesalers and the public.
• Worn Gundidj Aboriginal Cooperative Ltd, Warrnambool - $100,000. Worn Gundidj Aboriginal Cooperative will use its grant to set up a new joint venture to manufacture flavour bases using indigenous plant ingredients. The range of products includes marinades, pasta, biscuits, ice-cream and beverages.

Applications for Round 5 grants will close on 8 February 2007. You'll never get the funding if you don't apply, so visit http://www.affa.gov.au/content/output.cfm?ObjectID=C0FA5B83-A059-472A-B0807C505079DC3D or email the Food Processing in Regional Australia Program regionalfood@daff.gov.au for more information.