A new tranche of the Organic Processing Investment Grant (OPIG) Scheme opened for applications on Thursday 9 January. The scheme was allocated €3.5m in funding in Budget 2025, over twice the €1.5m allocated in the previous year. In announcing the scheme, Minister of State for land use and biodiversity Pippa Hackett said that the higher funding allocation in the national exchequer funded scheme follows unprecedented investment in the organic processing sector in 2024.
A new tranche of the Organic Processing Investment Grant (OPIG) Scheme opened for applications on Thursday 9 January. The scheme was allocated €3.5m in funding in Budget 2025, over twice the €1.5m allocated in the previous year.
In announcing the scheme, Minister of State for land use and biodiversity Pippa Hackett said that the higher funding allocation in the national exchequer funded scheme follows unprecedented investment in the organic processing sector in 2024.
“Last year I increased the OPIG grant rate to 60%, and we saw a trebling of investments in the sector compared to previous years as a result,” she said.
“I am delighted now to respond to that clear level of demand by securing a significantly increased budget for this year’s scheme.”
The OPIG scheme provides funding to processors who wish to invest in developing facilities for the processing, preparation, grading, packing and storage of organic products.
Grant aid is payable at 60% of the eligible cost excluding VAT. The minimum investment is projects costing €3,000 excluding VAT.
Application process
The new tranche of the scheme has a relatively short application window and will close on 8 February 2025. Three tranches were operated in 2024 – one in January, May/June and October/November – and it is likely that a similar format will apply in 2025. Applications can be submitted by post or by email.
Application forms and terms and conditions can be found on the Department’s website.
Copies can also be requested from the Organics and Market Supports Division, Department of Agriculture, Food and the Marine, Johnstown Castle, Wexford.
State purchases
The announcement also highlighted that the approval of the Green Public Procurement (GPP) Strategy in April 2024 mandates that 10% of the value of food purchased via public procurement must be accounted for by produce that is certified organic.
“The State now has a target to purchase 10% organic when procuring food, and we need to make sure as much of this as possible is Irish organic food,” Minister Hackett said. “Increased investment in the organic processing sector under this scheme will have us well placed to do so.”
The new strategy replaced the old system of green tenders and comes with an implementation action plan. The food categories to which the 10% organic rule apply are cereals, fresh beef, lamb, pork, poultry, fish, vegetables, and dairy produce.
Keen interest
Minister Hackett added: “I know from talking to processors that there is significant interest in the OPIG scheme.
"This scheme, along with the ongoing work of Bord Bia and the entire sector, demonstrates to organic farmers that we are making every effort to ensure that there will be strong demand for their produce. "Last September, a new National Organic Strategy was launched for 2024-2030, continued investment in processing capacity being a key priority for the sector, and this scheme will ultimately help us to ensure that farmers receive a premium price for organic product.”
Minister for Agriculture Charlie McConalogue said: “I welcome the focus on ensuring that organic farmers, fishers and food producers are competitive and productive, with enhanced wellbeing and economic sustainability.
The incomes of our producers are central and critical to the success of our FoodVision 2030 strategy, as they are the bedrock of our world-class organic agri-food sector.
“The reopening of this scheme once again underlines Government’s commitment to delivering a premium price for organic product and ensuring we meet the target in our National Organic Strategy of more than trebling the value of organic output by 2030”.
Increased produce
The latest intake of applications to the Organic Farming Scheme was recorded at 700 farmers at the end of 2024. All eligible applications were approved bringing the total number of farmers now farming organically or in conversion to 5,600.
“Investing in our processing sector, which allows organic processors to increase efficiencies and capacity, is key to ensuring that a market premium is obtained for organic output.”
The National Organic Strategy has big targets to increase the volume of organic produce in Ireland by 2030. This ties in with a national target to increase the percentage of utilisable agricultural area farmed organically to 10% by 2030 (currently 5.5%).
Some of the standout targets include:
Increase in wholesale food value from €200mn in 2024 to €750mn by 2030.Organic beef numbers will double in 2025 compared to 2024. This will help feed in to an estimated increase to 12,000t beef by 2030 compared to 4,000t in 2024.Organic sheep numbers are set to treble in 2026 compared to 2024. The Strategy estimates production to increase to 3,000t by 2030 compared to 500t in 2024.Milk production could double to 40m litres by 2030 from approximately 20m litres in 2024.The tillage area is expected to more than double by 2030 with oats and combi-crops (protein and cereal) highlighted as offering major opportunities. A Department of Agriculture survey estimates a need for 50,000t of livestock feed, concentrates and straights, this winter with in the region of 30,000t of this set to be imported. Poultry production could increase significantly from its current position with potential for a 50% increase in egg production to 53m eggs annually.Pork is highlighted as presenting ‘major opportunities’ to grow particularly though direct sales albeit from a low base.Horticulture imports currently account for approximately 70% of retail sales in Ireland. The aim is to reduce this to less than 50% by 2030 with huge potential in this area.Ireland is listed as by far the leading producer in aquaculture in the EU with a 42% market share followed by Italy (16%) and France (8%) with scope for future growth said to be recognised by all stakeholders. 
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