Introduction, aims and objectives

This is an old version of the page

This is an old version of this page

Date published: 14 May, 2015

Date superseded: 14 July, 2016

This guidance mainly relates to capital projects. Additional guidance, including that related to non-capital and co-operation projects, will be published later in 2015.

You must not start work on your project before receiving a grant offer letter confirming your application has been successful.

Preliminary costs, such as architects, planning and building warrants, may be incurred before you receive your grant offer.

These guidance notes are intended to provide an overview of the application process and the areas of expenditure which can be supported. However, they do not cover every situation or provide exhaustive commentary.

For further information please contact us:

FoodProcessingGrant_Enquiries@gov.scot
Telephone: 0300 244 9288

The Food Processing, Marketing and Co-operation Grant Scheme (FPMC) aims to support Scotland’s journey towards becoming a Good Food Nation.

This will be achieved through providing assistance to the food and drink sector in line with Scottish Government policy priorities.

“By 2025, people from every walk of life, will take pride and pleasure in the food served day by day in Scotland. An increase in Scottish food exports will attract overseas visitors and the quality of the food we serve will become one of the key reasons to travel to Scotland.

"Everyone will know what constitutes good food and why. All players in Scottish life – from schools to hospitals, retailers, restaurants and food manufacturers – will be committed to serving such food. Its ready availability will have contributed to improvements in children’s wellbeing and hence outcomes.

"Scottish suppliers will have developed their offering so that local increasingly equals fresh, healthy and environmentally sound. The most intractable dietary-related diseases will have begun to decline as will the environmental impact locally and world-wide, of our food consumption.

"The food industry will be a thriving well-known feature of local and national economies, with each part of Scotland rightly proud of its culinary heritage, past and present.”

Full details on the National Food and Drink Policy for Scotland can be found on the Scottish Government website.

National Food and Drink Policy

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Applications to this scheme should recognise the Government’s National Performance Framework, the Programme for Government and Scotland’s Economic Strategy.

Information can be found using the links below.

National Performance Framework and Programme for Government

Economic Strategy

Funded through the Scottish Rural Development Programme (SRDP), this scheme helps Scottish food and drink processors and manufacturers to:

  • add value to Scotland’s food and drink production
  • innovate and develop new products and packaging
  • increase vertical and horizontal co-operation, including working with retailers and the hospitality and food service sector
  • shorten and increase sustainability of supply chains
  • identify, inform and better serve current/access new markets

There is a continued need to consider novel practices and processes and to develop new products and technologies throughout the food and drink supply chain.

This will help address the challenges of how to increase food productivity and improve diet by aligning consumption closer to the Scottish Dietary Goals.

The Revised Dietary Goals for Scotland can be found using the link below.

Revised Dietary Goals for Scotland

This scheme will provide support for innovation in the food and drink sector where this is aligned with the aspirations of the Good Food Nation. This could include projects that aim to:

  • improve efficiency of production
  • maximise nutritional quality (further information below under How to complete your application) of manufactured standard food and drink products
  • trialling new uses for by-products

Funding could also provide support for business preparedness in identifying and preparing for market or export.

Rising resource risks and the growing recognition of the economic value being lost during food and drink production have raised the need to promote the circular economy and share facilities and resources.

This scheme will provide support for increased co-operation amongst operators, which could improve the resilience of the food and drink sector. It will also support the promotion of shortened supply chains, as a means to improve the economic performance, flexibility and the environmental sustainability, of the food and drink sector.

There is an increasing interest in local food and its important contribution to the economy.

Its success lies in ensuring collaboration throughout the supply chain – from seed to plate – and outwith the supply chain, between primary producers and research institutions or between manufacturers and higher education institutes.

This could include ensuring clear labelling to indicate the provenance of produce, or ensuring appropriate skilled resource is available.

It could also include the development and promotion of food and drink tourism and local markets, as a vital contribution to local economic growth.

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  • support is available for capital costs of businesses involved in the processing of primary agricultural produce to develop new, and improve existing, processing facilities

Support for non-capital and co-operation projects will be launched later in 2015. It is anticipated that assistance will be available to:

  • support non-capital costs towards the wider development of food and drink businesses (for example feasibility studies, consultancy costs, and product development)
  • support co-operation activity between food and drink producers/manufacturers and third parties (e.g. retailers, research community, hospitality and food service sector)

State aid rules promote a level playing field and ensure we invest well. State aid can occur whenever state resources are used to provide assistance that gives organisations an advantage over others.

It can distort competition, which is harmful to consumers and companies in the European Union. Where there is a genuine market failure, state aid might be necessary and justified.

You can find out more about the state aid regulations for this scheme in the State aid section.

State aid

If you apply for this scheme, we will ask you for a variety of details to do with you and your business. You can find out more about how we will store and use this information by reading our privacy policy.

Privacy policy

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