Are you an entrepreneur or an investor in the dairy chain? Are you interested in Greece? If yes, this guide is made for you. Designed as a toolbox, it will give you an overview of the general conditions for investment in Greece, of the specific measures for the Thessaly dairy chain, as well as information on support organisations and other useful contacts. It presents 14 concrete investment and partnership opportunities proposed by local stakeholders. This publication has been produced as part of the LACTIMED project with the financial assistance of the European Union under the ENPI CBC Mediterranean Sea Basin Programme. The contents of this document are the sole responsibility of ANIMA Investment Network, LACTIMED coordinator, the University of Thessaly (UTH), LACTIMED partner, and can under no circumstances be regarded as reflecting the position of the European Union or of the Programme’s management structures. LACTIMED aims to foster the production and distribution of typical and innovative dairy products in the Mediterranean by organising local value chains, supporting producers in their development projects and creating new markets for their products. The project is financed by the European Union for an amount of EUR 4.35 million (90%), through the ENPI CBC MED Programme. The European Union is made up of 28 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. The 2007-2013 ENPI CBC Mediterranean Sea Basin Programme is a multilateral Cross-Border Cooperation initiative funded by the European Neighbourhood and Partnership Instrument (ENPI). The Programme objective is to promote the sustainable and harmonious cooperation process at the Mediterranean Basin level by dealing with the common challenges and enhancing its endogenous potential. It finances cooperation projects as a contribution to the economic, social, environmental and cultural development of the Mediterranean region. The following 14 countries participate in the Programme: Cyprus, Egypt, France, Greece, Israel, Italy, Jordan, Lebanon, Malta, Palestinian Authority, Portugal, Spain, Syria, Tunisia. The Joint Managing Authority (JMA) is the Autonomous Region of Sardinia (Italy). Official Programme languages are Arabic, English and French. © Copyright LACTIMED 2015. No part of this publication may be reproduced without express authorisation. All rights reserved for all countries. Electronic version available on: www.lactimed.eu . Main author: Jeanne Lapujade, ANIMA Investment Network . Other contributors to this brochure: - Dimitra Gaki, Dimitris Goussios and Prodromos Mardakis, University of Thessaly (UTH); - Konstantinos Tsiboukas, Agricultural University of Athens (AUA); - All project promoters mentioned in the part “Investing and forming partnerships” of this brochure. Official sources used for the part “An attractive investment framework”: - Enterprise Greece (Investment and Trade Promotion Agency of Greece); - European Commission. 1 - ELECTRICITY GENERATION FROM BIOGAS ....................................................................................... 14 REPRODUCTION OF IMPROVED LOCAL SEEDS ................................................................................ 15 BANK OF NON STARTER LACTIC ACID BACTERIA STRAINS............................................................ 16 AGRICULTURAL SCHOOL OF THESSALY............................................................................................ 17 PRODUCTION OF MACEDONIAN-STYLE PEPPERS STUFFED WITH FETA CHEESE ..................... 18 MANUFACTURING OF PACKAGING FOR LOCAL PRODUCTS .......................................................... 19 PROCESSING OF THE WHEY PRODUCED BY THE CHEESE-MAKING INDUSTRY ......................... 20 IMPROVEMENT OF NATIVE AND TAME PASTURES .......................................................................... 21 ADVISORY SERVICES TO FARMS ........................................................................................................ 21 DEVELOPMENT OF REARING FACILITIES........................................................................................... 22 DISTRIBUTION OF FROZEN PIZZAS AND PITAS MADE IN THESSALY ............................................ 22 PARTICIPATORY SYSTEM OF GUARANTEE FOR DAIRY PRODUCTS ............................................. 23 PROMOTION AND DISTRIBUTION OF THE TYPICAL DAIRY PRODUCTS OF THESSALY .............. 23 DEVELOPMENT OF THE THESSALIAN BREAKFAST IN THE REGION’S HOTELS ........................... 24 2 3 An economy on its way to recovery The Greek economy, having achieved high growth rates until 2008, showed signs of recession in 2009 as a result of the global financial crisis, and from 2010 onwards the recession intensified considerably due to country’s fiscal imbalances. The need for consolidation led the country to embark on a quadrilateral mechanism of financial support (Brussels Group), comprised of the European Union, the International Monetary Fund, the European Central Bank and the European Stability Mechanism. The restrictive income policy and drastic limitation on public expenses during the past five years have had a negative impact on GDP growth. However, growth is projected to gain some momentum in 2016 as confidence strengthens and as structural reforms finally take hold and boost exports and investment. A Hub for trading with South-eastern Europe and the Eastern Mediterranean In 2014, the total value of Greek exports totalled EUR 27.188 mln, accounting for 15.2% of Greece’s GDP. Despite the fact that the economic crisis in Greece has continued in 2015, exports remained almost at the same levels as the previous year. Exports to the European Union reached 48% in 2014, highlighting the importance of Greek foreign trade to the EU. Greece’s main export partners are: Turkey (12%), Italy (9%), Germany (7%), Bulgaria (5%), Cyprus (5%), United Kingdom (4%) and USA (3%). The most exported commodities are: food and beverages, industrial products, petroleum and chemical products. In 2014, the total value of Greek imports totalled EUR 47.734 mln. The EU was an important trade partner for imports, accounting for 48%. The main countries of origin are: Russia (10%), Germany (10%), Iraq (8%), Italy (8%), China (5%), Kazakhstan (5%) and Netherlands (5%). The most imported commodities are: machinery, vehicles for transportation, fuel, chemical products and food. Greece is an ideal location to access the emerging markets of South-eastern Europe and the Eastern Mediterranean, while also being perfectly suited as a gateway to the European Union from the Middle and Far East. Transportation, location, and logistics, as well as the EU and Eurozone membership, provide investors with important advantages. Developed Infrastructure Greece has a developed infrastructure that enables the uninterrupted implementation of most investment activities. Within the framework of holding the 2004 Olympic Games in Athens, and the investment in the following years, a number of changes and improvements in a variety of areas were materialised. The economic crisis that has intensified since 2010, and continues today, has inevitably reduced available resources. However, through private investor participation, and given Greece’s current restrictive capabilities, investment in strategic projects that facilitate transport, logistics, and telecommunications will continue, so the flow of goods, services, and information is carried out efficiently, promptly, and cost effectively. A rich human capital During the last three decades, demographic shifts, EU integration, and global trends have been reshaping the economic landscape. Greece’s human resources successfully adapted to the needs of today’s economy. There is a good supply of highly qualified labour in Greece, capable of effectively supporting any investment project. Greeks are eager to invest in training their children. There are roughly 180,000 students enrolled in post-secondary educational institutions in Greece. During recent years the number of graduate students has increased significantly, reaching 37,014 enrolled in graduate programmes, and 23,066 enrolled in doctoral programmes in the academic year 2013/2014. Greece's "intellectual capital" will continue to be a strong national asset and investors who are seeking special skills will have a host of competitive advantages when choosing Greece as an investment location. 4 Greece’s Investment Incentives Law governs the terms and conditions of direct investment in Greece and provides for incentives, available to both domestic and foreign investors, dependent on the sector and the location of the investment. The Investment Law of Greece aims to increase liquidity, accelerate investment procedures and ensure transparency. The Law 4146/2013 “Creation of a Development Friendly Environment for Strategic and Private Investments” was specifically designed to improve the institutional framework for private investments. New provisions have been introduced regarding the provision of liquidity and acceleration of the grant disbursement procedures: . Investors can receive 100% (increased from 50%) advance payment of the grant with a letter of guarantee; . They may choose the preferred