£5 million in grants awarded to support the food supply chain

Hannah Downey

Food and drink businesses across Scotland have been awarded a share of £5 million to invest in infrastructure, purchase new equipment and upgrade or replace facilities.

In total 30 businesses will receive Food Processing, Marketing and Cooperation (FPMC) grants to support the food supply chain, safeguarding 1,386 jobs and creating 97 new ones.

The projects include improving storage facilities for oats, investing in new root vegetable processing equipment and purchasing new equipment to set up a Hebridean charcuterie business.

Announcing the funding, Rural Economy Secretary Fergus Ewing said:

“The coronavirus (COVID-19) 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.

“This scheme uses joint Scottish Government and European Union funding to give local businesses a helping hand, helping to ensure the long-term viability of our primary producers. Investing in local producers is an important step to help sustain and create employment opportunities within our rural communities.”

Stuart Allan of Melrose Farms near Banff, Aberdeenshire, said:

“We are very grateful to have received this FPMC grant. It 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. It will also help support our future plans for the business to grow.”


This is the ninth round of the Food Processing, Marketing and Cooperation (FPMC) scheme which provides start-up and development grants to food and drink suppliers and producers.

FPMC grants 2020:

2 Sisters Food Group Limited – Coupar Angus, Blairgowrie

To deliver a range of improvements to the equipment and infrastructure to their poultry processing facility, including a spiral freezer and plant room, equipment and infrastructure to support the production of value-added meal ingredients, External improvements to the site and roof upgrades to cover all production areas at Coupar Angus.

Gross Project Costs: £5,159,700

Award of £1,000,000


Nessgro Limited – Dalcross, Inverness

To purchase and install a range of technically advanced plant and equipment to allow it to increase capacity to meet the demands of its current customer base and to increase the shelf life to support customers’ need for reduced waste. 

Gross Project Costs: £779,175.48

Award of £233,752.64


Benzies (Partnership) – Turriff, Aberdeenshire

To diversify from retail packing to further processing of vegetables using out of spec and damaged carrots and potatoes where possible to reduce waste.

Gross Project Costs: £1,328,219.60

Award of £398,465.88


Kettle Produce Limited – Freuchie, Fife

To increase the number of lines and products of ready to cook vegetables. Want to invest in quicker running machinery to make lines more efficient. 

Gross Project Costs: £943,753

Award of £283,125.90


R Todd & Co – Leven, Fife

To purchase modern packing lines to increase the volume of fruit, reducing wasted fruit and ensuring higher quality.

Gross Project Costs: £815,903

Award of 244,770.90


C C McIntyre Farming – Ladybank, Fife

To construct a small packing shed and install a single packing line.

Gross Project Costs: 294,076

Award of £88,222.80


Stewarts of Tayside Limited – Glencarse, Perthshire

To enhance swede processing and cold storage facilities due to a significant increase in the retail swede business.

Gross Project Costs: £1,165,474

Award of £349,642.20


M A & M P Stockwell – Crail, Fife

For investment in the construction of a new cold store as well as the purchase and installation of refrigeration equipment.

Gross Project Costs: £825,392

Award of £247,617.60


Denhead Farms – Coupar Angus, Blairgowrie

To build and equip a new facility for the drying and dicing of vegetable waste (broccoli stalks or misshapen carrots), creating new products and adding value.

Gross Project Costs: £1,018,227.00

Award of £305,468.10


Knockfarrel Produce - Dingwall

To build and equip a new processing unit, to increase production capacity for its existing vegetable, fruit and pork products.

Gross Project Costs: £39,031.98

Award of £15,612.79


FIMM Potatoes Limited - Aberfeldy

To purchase and install an optical potato grading machine.

Gross Project Costs:£1,269,563

Award of £380,868.90


Melrose Farms - Banff

To build a facility for dressing, drying and storage of oats.

Gross Project Costs: £1,140,785

Award of £342,235.50


North Uist Distillery Ltd – Grimsay, Isle of Noth Uist

Distilling equipment for new distillery for whisky. Business moving to larger premises and want to produce whisky as well as the current gin.

Gross Project Costs: £963,396.81

Award of £192,679.36


Simon Howie Butchers Ltd – Dunning, Perthshire

Purchase and installation of an automated burger production line to meet a new opportunity as well as continued expansion, and a chilled processing room.

Gross Project Costs: £1,187,111

Award of £237,422.20


Millers of Speyside Limited – Grantown-on-Spey

Purchase a new state of the art vacuum packing system to get rid of bottlenecks in the business.

Gross Project Costs: £122,184.26

Award of £48,873.70


John M Munro Limited - Dingwall

The project will involve the construction of a building at the Dingwall facility, the installation of technically advanced plant and equipment, investment in meat manufacturing equipment, roof upgrades and yard area re-surfacing.

Gross Project Costs: £713,191.98

Award of £213,957.59


Mull Slaughterhouse Ltd – Glenforsa, Aros, Isle of Mull

To refurbish the abattoir, including a blast chill area, extension/modifications to rooms (e.g. cutting room) and staff office.

Gross Project Costs: £160,475.75

Award of £64,190.30


Hebridean Charcuterie from Croft No. 9 – North Shawbost, Isle of Lewis

New start business. To purchase equipment for the production of charcuterie meat products including a mincer, slicer, sausage stuffer.

Gross Project Costs: £14,011.60

Award of £5,604.64


PJ & I Stuart  - Strathdon, Aberdeenshire

To build a new steel framed building for the slaughter and plucking of turkeys reared on farm.

Gross Project Costs: £21,531.40

Award of £8,612.56


Balcaskie Farms - Anstruther

Create 2 new facilities - new grain dressing and bagging facility, including drying and dust extraction equipment a Stenton Farm and a butchery and chill unit at the Bowhouse Market.

Gross Project Costs: 394,430

Award of £78,886.00


HM & PP Swire – Laurencekirk, Aberdeenshire

To build and equip an extension to its existing property for deer processing on farm, making it the first organically certified facility for the slaughter and preparation of venison products in Scotland.

Gross Project Costs: £607,386.68

Award of £182,216.00


A & L Urquhart – Banchory, Aberdeenshire

To install an on-farm butchery with preparation and kitchen areas, including plant and equipment to fit out butchery.

Gross Project Costs: £73,174.03

Award of £29,269.61


East Lothian Eggs Ltd – Gifford, Haddington

New start business requesting funding towards state of the art egg packing equipment, fork lift truck and pallet trolley.

Gross Project Costs: £134,587.54

Award of £53,835.01


Middleton of Rora Dairy Produce Limited – Longside, Peterhead

Project to reduce its dependence on milk processors and maximise added value to the premium milk on farm. Project involves the segregation of a part of the production area to create a new chilled glass packing area as well as equipment including a pasteuriser, an incubator tank, a homogeniser, steam boiler, plastic pot filling line, rotary glass filling machine, labelling system separator and injet printer.

Gross Project Costs: £253,942.55

Award of £101,577.02


Katy Rodger’s (artisan Dairy) Knockraith Farm – Balfron, Glasgow

The construction and fit out of a new dairy building that will connect to its existing processing dairy, café and gift shop as well as plant and equipment that includes a pot washer, glass bottle wash and filler, pasteurisation tanks, milk storage tanks and a micro lab.

Gross Project Costs: £815,867.06

Award of £244,760.12


What’s Fresh Limited (Ross Neilson) – East Kilbride, Glasgow

To develop a milk processing and retail operation (doorstep delivery service) based at the family farm. The purchase and installation of processing equipment and the construction of a milk processing/office building.

Gross Project Costs: £929,680.00

Award of £278,904.00


WW Kerr & Sons - Ayr

To create a direct to consumer milk vending machine business. Grant is requested for the purchase of a pasteuriser, a glycol chiller unit and a 500ltr milk storage tank.  Additionally, 2 traditional farm buildings will be converted into a pasteurisation room and a storage room.

Gross Project Costs: £165,190.00

Award of £66,076.00


A A Willis - Aberdeen

To build additional production space and equipment. This will involve the construction of a building with a cold and chill store, pasteuriser, cream separator and batch freezer.

Gross Project Costs: 194,079.72

Award of £77,631.89


Isle of Kintyre Ltd – Campbeltown, Argyll

The purchase of a cheese cuter, a mixer and extruder to automate part of the cheese production and increase production.

Gross Project Costs: £115,9870.00

Award of £46,394.80


Kerrycroy Farmers – Mount Stewart, Isle of Bute

To undertake a feasibility study into the formation of a legally recognised producer association or co-operative comprising all milk producers on the Isle of Bute.

Gross Project Costs: £18,000.00

Award of £12,600.00