Ireland is to receive a €200m investment scheme for processing and marketing of agricultural products.

The funding was approved by the European Commission on Tuesday.

The EU Commissioner for Trade, Phil Hogan, has welcomed the decision.

The scheme will run until the end of 2025.

The scheme, supplied under EU State aid rules, is to support long-term capital investments in the primary food processing sector.

This will take the form of grants and will be open to small and medium-sized enterprises (SMEs) and large companies in the processing and marketing of agricultural products.

The scheme is aimed at strengthening the Irish agri-sector by promoting greater product and market diversification.

EU Commissioner for Agriculture and Rural Development, Phil Hogan, speaks during a press conference at the German Ministry for Food and Agriculture in Berlin, Germany | Image: Rainer Jensen/DPA/PA Images

Speaking after the announcement, Commissioner Hogan commended Irish authorities for developing the scheme which he said “will provide grant-aid to SMEs and large companies in the Irish agri-food sector".

The sector employs more than 173,000 people and accounts for 10% of the value of total Irish goods exports.

Mr Hogan said: "Both in terms of my previous role as agriculture commissioner and in my current role as Trade Commissioner, I am well aware of the economic importance of the sector, in terms of job creation and economic added-value.

"I am confident that the scheme approved today will encourage innovative investments in this important sector which would otherwise not have occurred.

"This scheme must also been seen through the prism of Brexit and the need for the sector to adapt to the new situation and to improve its resilience and become more diversified through the identification of new markets.”

The EU Commission says the scheme will also contribute to "the EU objectives of ensuring viable food production and promoting intelligent and sustainable growth."

"Its approval reflects the commission’s conclusion that it is in line with EU agricultural State aid rules."