Food processing and marketing grant pot reopens in Scotland

Applications have reopened for Scotland’s Food Processing, Marketing and Co-operation grant scheme, designed to help food and drink producers to grow their businesses.

A total of £7.3m is available this year to support initiatives that will safeguard jobs and increase sector efficiency.

The scheme offers start-up grants for new food processing businesses or development grants for an existing one.

See also: Scottish government awards £6m of processing grants

Funding is available to enable investment across projects, including buildings and equipment, feasibility studies, co-operative ventures and the improvement of supply-chain efficiency.

Previous successful applicants include Fife-based The Buffalo Farm, which received funding to help diversify from buffalo meat to a range of dairy products using buffalo milk, while Crafty Maltsters secured an award of more than £144,000 towards the creation of a new maltings facility at its Auchtermuchty farm.

The latest funding round opened on 4 August and applications must be submitted by midnight on 12 September 2021.

Rural affairs secretary Mairi Gougeon said as well as encouraging innovation and co-operation, the scheme would help to sustain and create employment opportunities within rural communities.

“The Covid-19 pandemic has also underlined the need for a strong food supply chain and growing consumer interest in food that is produced locally to a high standard.

“Looking to the future, this funding will help new and established businesses to move into emerging markets and ensure the long-term viability of our primary producers.”

Scheme details

The maximum rate of grant a business is eligible for will be determined by the size of the business and by the activity or products the business produces.

However, businesses processing either cereals, meat, dairy products or edible vegetables are likely to be eligible for up to 40% of the capital costs of a project.

A higher percentage of the overall costs may be available for non-capital projects, such as feasibility studies or co-operation ventures.

Applicants will be notified if they have been successful by mid-December 2021, at the latest.

All projects awarded funding in this round must be completed, with all costs claimed, by 31 March 2022.