Scottish Food Grant Scheme

A new £60 million scheme to help develop and promote Scottish food opens for business this week.

For the first time, the scheme for food producers and processors will support greater collaboration in the supply chain, in line with a future national food policy.

Up to £10 million per year is available to help:

construct new facilities, refurbish existing premises and purchase new equipment
support wider marketing and business, including website development and consumer education
provide resources to support collaboration within the food chain such as distribution and accessing markets
Cabinet Secretary for Rural Affairs and the Environment Richard Lochhead said:

“Supporting Scottish food is in our national interest and this scheme aims to help our food enterprises flourish and grow.

“We produce some of the finest food in the world, from our quality meat to our soft fruit and oats, yet it is not always easy for Scottish suppliers to access markets. This fund aims to develop greater collaboration and ensure that businesses can get into supply chains and meet consumer demand.

“Success stories funded by the previous grant scheme include Hogarths oat and barley processors, Abbey Fruit packagers and Scotherbs.

“For the first time, the scheme offers support to help food businesses access the supply chain. They must also demonstrate their environmental credentials and show they are making efforts to develop healthier food.

“This is all in line with our future national food policy, which will be taking a cross-cutting approach to the issues of food and its wider impacts on our health, our environment and our economy.

“I am inviting applications for innovative and creative projects, to ensure our world class produce is delivered from the producer to plate.”

The National Food Processing, Marketing and Co-operation Scheme is provided under the Scotland Rural Development Programme (SRDP).

The Food Processing, Marketing and Co-operation scheme does not cover fish, which will be covered by the European Fisheries Fund due to launch later this year.

Previously funded projects include Hogarths of Kelso an established miller and processor of oats and barley received grant aid towards the costs of refurbishing the existing building, together with the purchase of new storage bins, grinding, weighing and packing equipment

The company purchases 13,000 tonnes of oats and barley per annum from a group of 60 dedicated producers, 90 per cent of whom farm in the Borders and have long standing relationships with the business. In order to meet the growing demands for its oat based products further producers will be required. As a result of these activities, the Company plays a key role in the rural economy of the Borders, and is a major purchaser of the milling oats and barley produced on farms in the area. Following milling and grinding, the oatmeal and pearl barley are currently supplied to a range of customers. However, the company has a particularly close relationship with Nairns of Edinburgh Limited, this processor purchasing 65 per cent of the total oat production for its range of oatcakes and oat-based biscuits.

Abbey Fruit, a soft fruit and vegetable processor at Arbroath, received grant aid towards the construction of an extension to the current packhouse together with the purchase of conveying and cooling equipment.

Since its formation, this business has experienced a rapid increase in demand for its products. This growth in turnover is expected to continue, particularly from the main customer, Marks and Spencer. The business currently grades and packs soft fruit and Brussels sprouts supplied by twelve producers.

Scotherbs grow and market fresh herbs at Longforgan, Dundee, and received grant aid towards the construction of a new, purpose built packhouse, together with the purchase of additional washing, packing and handling equipment.

The company offer a complete range of culinary herbs, exotic leaf salads, edible flowers, herb mustards, pestos and salsas and now supply to a wide range of customers, with Tesco being a major outlet.

Connage Highland Dairy is a family partnership, formed to own and operate an organic cheese manufacturing facility at Ardersier, Inverness. Grant aid supported the construction of the processing building, including a chill store and packing area, together with the purchase of cheese vats, moulds and associated processing and packing equipment.

The new partnership initially produced a traditional cloth wrapped organic Dunlop cheese and a Caerphilly cheese but are following with a range of handcrafted, organic hard and soft cheeses. The market for an unsalted premium organic butter will also be investigated. The cheeses are totally new to the market, and are sold under the Connage Highland Dairy brand, with distinctive packaging to reflect the Highland image.