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£1.4 million for food industry
27/02/2009
Extra funding of almost £1.4 million is to be invested in Scotland's food and drink sector to help support the economy.
Eleven companies will benefit from the third round of awards under the Food Processing, Marketing & Co-operation Grants (FPMC) scheme.
Funding to date of £13.4 million under the scheme is expected to generate investment in excess of £54 million in the food and drink sector in Scotland. This will create over 170 jobs and safeguard a further 1,720.
Projects include:
- £148,563 for the Soil Association to build on the "food for life" programme to ensure meals for more schools and hospitals are made with 75 per cent unprocessed, 50 per cent local and 30 per cent organic ingredients
- £228,804 for the Scottish Crofting Foundation to develop and support new producer groups and collaborative marketing ventures
Rural Affairs and Environment Secretary Richard Lochhead said:
"The food and drink industry employs around 350,000 people in Scotland and is worth around £7.5 billion to our economy.
"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.
"And later this year we will unveil the next stages in 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.
"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."
Patrick Krause, chief executive of the Scottish Crofting Foundation, said:
"Crofting in Scotland has the potential to add significantly to food production for local consumption. The assistance offers an important opportunity to deliver greater collaboration between crofters to develop new markets for produce and ensure every opportunity for crofters' food, which is produced in a wholly environmentally sustainable manner, is grasped."
Hugh Raven, director of the Soil Association in Scotland, said:
"We are delighted to receive a grant from the Scottish Government. This funding will help us to link-up more small Scottish food producers with schools and hospitals, enabling them to serve-up healthy meals for their children, patients and staff made from the finest local, fresh and seasonal produce."
Today's grants are part of the National Food Processing, Marketing and Co-operation Grants 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 total of £60 million is being 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.
Today's awards include include:
- Border Biscuits, Lanark, £233,200 towards the costs of an extension to the current factory and new production and packing line. The company is developing a 'Better for You' line, based on fruits and oats, and purchases its oatmeal from John Hogarth Ltd at Kelso. Twenty full-time positions will be created on completion of the project -Strathmore Veg, Blairgowrie, £80,208 for installation of carrot and swede processing equipment for new supermarket contracts -Strathmore Foods, Forfar, £148,750 for the upgrading of buildings and equipment to develop new chilled and convenience dishes -Mackies Ltd, Rothienorman, £362,293 for the installation of an automated packaging system that will have significant environmental benefits through reducing road miles and reducing waste streams.Ten full-time posts will be created on completion
- Ian J McIntosh, Fraserburgh, £83,532 for the construction of new production area and purchase of processing equipment to produce a range of new value added meat products
The Scottish food and drink manufacturing is still outperforming the industry in the UK as a whole. Over the year to quarter 3, 2008 output in Scotland increased by 3.1 per cent, but fell by 1.8 per cent in the UK as a whole.