The Scottish Government

Regional Priority Code

Business Viability and Competitiveness Priorities

Relevant Packages

Improving the competitiveness of rural land based businesses by supporting restructuring and development through improved viability, competitiveness and innovation.

Shetland's Economic Policy Statement emphasises three policies for agricultural development. These are the:

• generation of improved product quality and greater efficiency of production in all agricultural sectors

• promotion of value added opportunities in agricultural processing

• maintenance and enhancement of the high health status of Shetland livestock.

Orkney has a reputation for being a forward thinking community which has a successful track record for marketing high quality produce. Schemes such as ABIS, CCAGS, ABDS and processing and marketing grants have helped restructure and improve many land based rural businesses. Orkney has realised the importance of a whole-chain approach to the supply of food and drink. As a remote island community with a land based economy, the importance of local wealth and reduced food miles is a priority. Orkney recognises the importance of producing quality primary products because of the transport issues of an island community. The output of quality goods for sale to access the top end of the market is important. Proposals which support Orkney's continuing need to build and improve competitiveness, viability and innovation will assist the community in tackling its natural disadvantages of distance from markets and transport costs.

1. Capital investment in agricultural businesses where the investment will:

NIS01a

a. reduce production costs. Particularly proposals that:

2-4, 29, 30 & 33

for Shetland;

• reduce production costs or reduce unit cost of production in the agricultural sector and related industries

• reduce dependence on imported winter feed, e.g. through collaboration on machinery and infrastructure

• introduction of novel crops, local scale renewable energy provision, improvements to water supply

• increase use of native breeds and varieties with reduced input and/or management costs.

for Orkney;

• reduce production costs or reduce the unit cost of production particularly in the livestock sector and related industries.

NIS01b

b. enhance the productivity of the business. Particularly proposals that:

2-4, 33 & 35

for Shetland;

• enhance agricultural productivity and viability of associated businesses in Shetland

• improve management and use of under-utilised previously improved or cultivated land where such areas are not important for biodiversity (see Biodiversity 8)

• improve soil quality, e.g. through use of natural fertilisers and soil enhancers.

for Orkney;

• enhance livestock productivity and the viability of associated businesses in Orkney.

NIS01c

c. make the business better able to respond to market demand. Particularly proposals that:

1-4 & 35

for Shetland;

• increase the range and availability of local produce, including native Shetland breeds and varieties

• seek to market Shetland produce within and beyond the islands

• increase participation in the organic market.

for Orkney;

• have an innovative approach and respond to market signals and demands

• develop new products with a strong local identity (e.g. food and drink)

• undertake direct marketing in Orkney or beyond or are involved in a recognised marketing scheme promoting an Orkney product.

NIS01d

d. enhance the quality of the commodities produced by the business. Particularly proposals that:

1-4, 33 & 35

for Shetland;

• add value through, e.g. innovative production techniques, on and off-farm processing or recognised quality assurance.

for Orkney;

• add value to Orkney produce within or beyond the islands.

NIS01e

e. maintain and improve animal health and welfare standards. Particularly proposals that:

2 & 30

for Shetland;

• involve participation in recognised health and welfare schemes through best use of latest technical advice and knowledge, e.g. provision of on-farm infrastructure to improve hygiene and safety, creation of mixed broadleaf and conifer shelterbelts.

for Orkney;

• improve and develop animal health and welfare standards through best use of the latest technical advice and knowledge

• involve participation in a recognised animal health scheme.

NIS01f

f. facilitate better waste management. Particularly proposals that:

27-30 & 33

for Shetland;

• improve management of animal waste, resulting in reduced use of artificial fertilisers and production of resources for further productive use, e.g. energy production

• involve participation in waste re-cycling schemes.

for Orkney;

• improve management of animal waste, resulting in reduced use of artificial fertilisers and production of resources for further productive use, e.g. energy production

• involve participation in waste re-cycling schemes.

NIS01g

g. mitigate farm pollution and/or reduce greenhouse gas emissions (in specific areas - see "Water and Soils"). Particularly proposals that:

for Shetland;

• improve management of silage and slurry effluent

• provide local scale renewable energy, e.g. small scale wind power for the dairy industry and horticulture.

for Orkney;

• use an innovative approach to dealing effectively with animal and feed waste through minimisation, recycling or reduction in the requirement for importing of fertilisers, e.g. bio-gas projects.

27-30, 33 & 34