Description

Subsidies made for providing logistical support for the distribution of certain products to producers, processors and traders. This method facilitates for example cooperative advertising of domestic products and promotes regional provenance.

Requirements

• A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
• Clear and coherent political strategy and targets for policy-makers and public authorities
• Clear development prospects for agriculture, the agri-food sector and participation of farms
• Close cooperation and knowledge sharing with farmers' organisations
• Compatible regional and world trade law (WTO conformity)
• Constant market surveying and forecasting
• Open-access to all farms, regardless of size and location
• Ownership and initiative on behalf of the local population
• Regulated and legally protected payment structures

Possible Negative Effects

• Market and trade distortion
• Risk of abuse through nepotism