£4 million for food industry

The money includes funding for a major £1 million scheme which will see food producers working together to access new markets, boost profitability and put more Scottish food on consumers' plates.

The scheme will be run by Scottish Agricultural Organisation Society (SAOS) Limited based in Midlothian.

Other grants include:

£170,000 for Quality Meat Scotland to relaunch Scotch beef in France, Belgium and the Netherlands following last year's ban on exports in the wake of Foot and Mouth Disease

£20,000 to help the Rannoch Smokery develop innovative new products

£130,000 for Simon Howie Butchers to develop a new range of healthy eating meals

Speaking from a food fair in Paris where he was helping to promote Scottish food exports, Cabinet Secretary for Rural Affairs and the Environment Richard Lochhead said:

“Scotland's food and drink industry is worth around £7.5 billion to the Scottish economy and employs around 350,000 people. Food and drink accounted for over a quarter of Scotland's manufacturing exports in 2007.

“We must do all we can to continue to support this vital industry, particularly in the current economic climate. Today's grants are part of a £75 million investment the Scottish Government will make in the industry over the next five years as we move towards our target of growing the value of the industry to £10 billion by 2017.

“At the same time we are taking huge steps forward through the development of Scotland's first-ever National Food and Drink Policy. This too will boost business, as well as putting more Scottish food on consumers' plates and delivering major health and environmental benefits.

“Scotland's food and drink is renowned throughout the world. Our products stand for quality, beautiful landscapes, clear air, pure water and good, honest husbandry. They help define our nation and that is why they are playing a huge role in our promotion of Homecoming, helping to lure people back to Scotland in 2009 to sample them at source.”

Today's grants are part of the National Food Processing, Marketing and Co-operation Scheme, which in turn is part of the Scotland Rural development Programme (SRDP). Grants are available to to build or refurbish premises, purchase new equipment, support marketing and business development and encourage collaboration.

A further £6 million was awarded in June and a total of £60 million will be awarded over five years, along with £10 million through the Processing and Marketing Grant Scheme in the European Fisheries Fund and £5 million through the Marketing Development Scheme.

The full list of today's awards are as follows:

Scottish Agricultural Organisation Society (SAOS) Limited, MidLothian – £1,036,500 to stimulate, encourage and support greater collaboration within Scottish food and drink supply chains

Quality Meat Scotland (QMS) – £170,340 to identify and developm new markets for Scotch Beef in France, Belgium and the Netherlands

Scotch Premier Meat, Aberdeenshire – £16,072 to create tripe processing area and refrigeration and purchase new equipment

Rannoch Smokery, Perth and Kinross – £23,353 for new packaging and production equipment for innovative new smoked products

Angus Cereals Limited, Angus – £2,262,351 for construction of Scotland's first combined cereal crop processing centre

Simon Howie Butchers, Perth and Kinross – £133,640 towards development of pork processing, bacon curing and a new range of 'healthy eating' meals

Dundas Chemical Company, Dumfriesshire – £263,901 for rendering plant for Class 3 animal waste and additional Class 1 line

Tio Limited, Moray – £94,325 for new peeling, cutting and grading equipment for organic vegetables

Mr Lochhead was in Paris today to attend the Salon International de l'Agroalimentaire (SIAL) food fair. Quality Meat Scotland had a stand at the exhibition.