The European Commission said this week that Austria could pay aid worth a total of €4.9 million per year for costs linked to the quality label and biolabel issued by Agrarmarkt Austria (AMA) and open to all food firms in the EU.
The quality label can be awarded to agricultural products of 'significantly higher quality' than regular products, said the Commission, while the biolabel is applicable to organic products.
As food makers battle out brand positions, adding value to food products is being favoured as a way to push sales up and profit forward through premium pricing ranges.
The value-added concept has also gained in popularity on the back of food safety scares that have hit Europe - the BSE outbreak in the UK for example - and damaged consumer confidence in the food chain. Initiatives such as the food quality labels proposed by Austria could help the food industry win back lost faith in the chain.
According to the Commission, the labels cover most groups of agricultural products including meat and meat products, eggs, milk and milk products, cereals, vegetables, fruits and several processed products.
The labels will also show the origin of the food product, allowing producers and consumers in all of the 25 Member States to identify the place of production.
Further details for the industry about the food quality label will be available on the Commission website.