March 10, 2016

Funding for Czech dairy farms to boost exports to Arab markets 

Dairy farms in the Czech Republic will find greater convenience to export milk and dairy products to Arab nations, thanks to an EU funding programme known as Milky Way.

Under the three-year programme, farms will receive CZK140,000,000 (US$6 million) in funding. The EU will provide half of the funds required to get Czech products exported to countries like Lebanon, the UAE and Saudi Arabia. The Czech state and local dairy farms will cover the rest of the amount.

The project could boost Czech products' position in the Middle East, said Martin Pýcha of the Czech Agriculture Association.

"The Czech Republic has long had strong economic ties with Arab countries as well as exporting foodstuffs there," Pýcha added. "Those countries do not have great agricultural potential and they rely largely on imports."

Companies are obligated to cover all production costs in order to qualify for subsidies.