COVID-19 VIC: Business, Non-Profits – E-commerce and New Marketplace Transition Package

This program aims to help Victorian farmers and producers transition to online markets and build business resilience and skills, as part of the Victorian Government's commitment to support the sector during the coronavirus (COVID-19) pandemic. It seeks to assist Victorian farmers and producers maintain operations, build resilience and manage the economic impacts of the pandemic arising from market and supply chain disruptions.

The package forms part of the immediate support provided by the Victorian Government through the Agriculture Workforce Plan.

The objectives of the package are to:
- Boost the capacity of eligible organisations to continue supporting Victorian farmers and producers to sell online and transport produce efficiently to customers.
- Remove financial barriers for Victorian farmers and producers seeking to sell through online platforms and marketplaces, including customer delivery mechanisms.
- Contribute to regional economic growth and jobs through increasing sales of Victorian agriculture and food products.
- Facilitate skills development for Victorian farmers and producers in online sales and marketing (this will be implemented in the education component of this package, separate to these guidelines).

There are three types of grants available:
- Agriculture online marketplace – Fee rebate: Capped at $500 per existing producer up to a maximum total of $50,000 (for both fee components).
- Agriculture online marketplace – New user establishment grant: Capped at $1,000 per new producer attracted to the site up to a maximum total of $50,000 (for both fee components).
- Agriculture online marketplace – Freight and logistics grant: Capped at 20% of total monthly sales on the online site or $100,000 per organisation (whichever is less).

A training program for farmers and producers will be provided as part of the package.

Businesses selling through the platforms must be willing to contribute to the total costs of freight and logistics services.

Organisations can apply for both fee and logistics grants in the one application form.

A total funding pool of $1.5 million is available.

Key online farmers’ markets and marketplaces have been contacted about the package. For more information, please contact the program administrator.

Eligible applicants include Victorian not-for-profit, social enterprise or charitable organisations that also meet the following eligibility criteria:
- Currently operating an online market platform, that:
a) Facilitates the sale of Victorian agricultural products or supports farmers and producers with online sales.
b) Benefits Victorian farmers and producers to develop online sales mechanisms.
c) Sells primarily Victorian agricultural produce or small-scale manufactured food such as cheese, small goods, oils and conserves.
d) Is not solely focused on selling beverages.
e) Does not sell livestock.
- Demonstration of an organisational mission or purpose that benefits the Victorian agriculture or small-scale food sector rather than individual businesses.
- Businesses selling through an online platform must not have an annual turnover of > $5 million.
- Hold an Australian Business Number (ABN) and have held that ABN for a period of one year.

It is preferable that eligible organisations have a demonstrated track record in:
- Cross-sector collaboration and design of mutually reinforcing activity across the Victorian agriculture and small-scale food sector.
- The delivery of services to or representation of Victorian farmers and producers.
- Clear interest in promoting the Victorian local food sector and short supply chain models for the benefit of all Victorian agriculture and producers.

Eligible activities/costs include the following:
1. Agriculture online marketplace – Fee rebate
- Those associated with online sales. These fee rebates will be paid to eligible organisations managing the online sales site to pass on directly to the farmer or food producer. The fees are defined as:
a) Registration fees and sale fees
b) Charges to e-commerce site associated with the sale of produce

2. Agriculture online marketplace – New user establishment grant
- Those that will support eligible organisations to incentivise additional Victorian farmers and producers joining the online sales site. This will include the costs associated with attracting and supporting additional producers to online sales, including:
a) Online support
b) Basic short chain supply education
c) Marketing support
d) Initial registration

3. Agriculture online marketplace – Freight and logistics grant
- Those that will enable eligible organisations to support Victorian farmers and producers manage the costs associated with the storage and transport of Victorian agricultural produce arising from online sales, including:
a) Logistics planning
b) Road freight
c) Warehousing
d) Cold storage
e) Packaging
f) Food safety
g) Tracking and record keeping
h) Establishing sustainable short chain logistics systems

The main assessment criteria include:
- Eligibility of the organisation as defined by the program Guidelines.
- Alignment to the objectives of the E-commerce and New Marketplace Transition package.
- Demonstration of how the organisation will create economic benefits for Victorian farmers and producers through increased sales and/or logistics efficiencies.
- Demonstrated capacity and capability of the organisation to work directly with a broad range of Victorian farmers and producers.

Applications that demonstrate use of grant funding to enhance cross-sector collaboration will be favourably assessed.

The following restrictions apply:
- Retrospective transport costs will not be paid.
- Private vehicle use does not constitute a form of freight transport.