SCOTLAND’S FOOD and drink businesses are to be awarded a share of £5 million in funding to develop their offering and operations to meet growing demand for local food.

This financial pot, announced by the Scottish Government, will provide start-up and development grants to 30 food and drink businesses to support the food supply chain and safeguard 1386 jobs – creating 97 new ones.

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The largest award of £1 million will be given to 2 Sisters Food Group Limited in Coupar Angus, which plans to spend a total of £5 million on improvements to their poultry processing facility.

Other business recipients of the grants include Kettle Produce Limited in Fife, which will receive £283,125.90 to help increase its number of lines and products of ready to cook vegetables.

Knockfarrel Produce in Dingwall is set to receive £15,612.79 to build and equip a new processing unit to increase production capacity for its existing vegetable, fruit and pork products.

North Uist Distillery Ltd has been awarded £192,679.36 to help them buy distilling equipment for a new distillery for whisky, which it plans to add to its gin business.

Moving directly south to the Isle of Mull, the island's slaughterhouse is to receive £64,190.30 to refurbish the abattoir and Balcaskie Farm in Anstruther will be awarded £78,886 towards a new grain dressing and bagging facility, as well as a butchery and chill unit at the Bowhouse Market.

The Isle of Kintyre Ltd in Campbeltown is one of many dairy businesses receiving funding from the pot and is to receive £46,394.80 to purchase a cheese cutter, a mixer and extruder to automate part of the cheese production and increase production.

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Announcing the funding, Rural Economy Secretary Fergus Ewing said: “The coronavirus pandemic has underlined the importance of a strong and effective food supply chain and an increased consumer desire for locally produced food. This support will enable established producers and businesses across Scotland look to the future and capitalise on emerging marketing opportunities, as well as offer support to start-up businesses.

Stuart Allan of Melrose Farms near Banff is very grateful to receive a grant for £342,235. “This will provide great opportunities and potential within our field of work and will be used to build a new facility on our farm for dressing, drying and storing oats,” said Mr Allan. “It will also help support our future plans for the business to grow.”

NFU Scotland president Andrew McCornick welcomed the funding announcement noting that it will make a huge difference to many producers and processors going through uncertain times: “The wide ranging types of businesses receiving some of this year’s grant is very exciting for Scotland’s agriculture industry, with almost every sector represented in some capacity. This will allow businesses to add value and sustain or create jobs.

“During Covid-19 Scottish producers and processors have shown just how important they are to keeping a healthy and well fed nation, which in turn has shown just how important a fair and strong food supply chain is,” he concluded.