Rural Payments and Services

Cabinet Secretary launches £70m capital support scheme

A massive funding programme for food and drink businesses across Scotland has been launched by Cabinet Secretary for Food, Richard Lochhead.

On a visit to The Breadwinner Bakery in Edinburgh during Real Bread Week in Scotland’s Year of Food and Drink, Mr Lochhead announced the new Food Processing, Marketing and Co-operation (FPMC) grant scheme is now open for capital-related applications. The scheme will widen to non-capital and co-operation bids later in 2015.

The scheme will plough £70 million into food and drink processing in Scotland as part of the new Scottish Rural Development Programme (SRDP) 2014-2020, which is expected to receive formal EU approval shortly.

Mr Lochhead said:

"Scotland’s £13.9 billion food and drink growth sector has already rocketed to massive success since 2007, fuelled by the unwavering support of this Government and our agencies.

"Under the last Food grants scheme, which ran from 2007 to 2013, the Scottish Government invested £47 million in 172 projects, levering in £114 million private sector funding and safeguarding or creating about 8,500 jobs.

"The new scheme will invest event more in Scottish food and drink businesses over the term of the new SRDP, and I am delighted to be launching it in Scotland’s Year of Food and Drink."

The Breadwinner Bakery has previously received £20,000 in support via the food grants scheme and was last year named 2014 Bakery of the Year at the Scottish Food Awards.

Director Kris McVey said:

"Since receiving our FPMC grant, our business has gone from strength to strength. The funding enabled us to move into bigger premises and win new contracts, such as the deal to supply Scotmid and Patisserie Valerie – while remaining true to our values as a 'Real Bread' Bakery. As a consequence, we have been able to take on 17 more staff, including two apprentices through our partnership with Bernardo’s – with many more opportunities available to us, the challenge now is to manage the growth."

Also open for applications today is the Rural Development: Knowledge Transfer and Innovation Fund (KTIF), the successor to the Skills Development Scheme, which is worth £12 million over the course of the new SRDP.

Background

The FMPC and KTIF schemes are part of the £1.3 billion Scottish Rural Development Programme (SRDP) 2014-2020. More information, and details of how to apply, can be found through the links below:

Food Processing, Marketing and Co-operation

Knowledge Transfer and Innovation Fund

Although the SRDP is still subject to formal EU approval, the Scottish Government has now received a letter of comfort from the European Commission.

Breadwinner Bakery was established in Bruntsfield Place, Edinburgh, by Master Craftsman Baker Sean McVey and his wife Lesley in 1973. The bakery uses traditional craft baking methods, making all products by hand. They bake using simple ingredients and dough starters like apple and potato, without any additives or preservatives. Their product range includes breads, sliced loaves, artisan rolls, cakes, savouries, pastries and tray bakes, as well as more unique breads, with flavours such as olive and Gruyère cheese, walnut and orange, and chocolate and champagne. Son, Kris McVey, joined the family business after a period in banking and now is Business and Project Manager.

Breadwinner Bakery