A £46 million agri-food investment initiative has been described by Northern Irish farm leaders as a 'very positive development' for the province.

Food and drink processors of all sizes are eligible to apply for the scheme, which was officially opened earlier this week.

Developed by Invest Northern Ireland, it has been designed to improve the overall competitiveness and productivity of the agri-food and drink processing sector.

MORE NEWS | Contract agreed for 2025-2026 UK sugar beet crop

MORE NEWS | Forestry and Land Scotland to future-proof iconic tree

Agri-food processing makes a significant contribution to local communities throughout NI, particularly to rural communities.

By targeting support to this sector, the scheme aims to promote regional balance, with capital investment helping companies adopt greener technologies and boost productivity.

The Ulster Farmers' Union (UFU) said the scheme would have 'positive knock on affects' for rural communities and the farming industry.

UFU president, William Irvine, said: “Our local agri-food and drink industry is Northern Ireland’s largest manufacturer, supports approximately 113,000 jobs and feeds some 10 million people across the globe.

MORE NEWS | Sharp decline in dairy producers as pressure continues

“The success of which is built upon our food producers including our farmers, who produce nutritious food to the highest environmental, animal health and welfare, and food safety standards.”

As part of the scheme, the maximum aid intensity that can be granted to small businesses is 35% of the eligible investment costs and the minimum project size is £300,000.

For medium businesses, the maximum aid intensity that can be granted is 25% of the eligible investment costs and the minimum project size is £1,000,000.

And the maximum aid intensity that can be granted to large businesses is 20% of the eligible investment costs.

Chief executive of Invest NI, Kieran Donoghue, said: "The aim of the initiative was to improve the overall competitiveness of Northern Ireland’s agri-food and drink processing sector.

He said: “To this end, we are particularly seeking projects which are innovative and demonstrate how they will improve the productivity and sustainability of the business.

“It is now open to applications from all eligible agri-food and drink processors in NI, and I encourage businesses in the sector to avail of this significant opportunity to invest for future growth.”