A new blueprint for the future of Orkney's food and drink sector has been drawn up by a local group of industry representatives and economic development chiefs.

The five year plan has been agreed between Orkney Enterprise, Orkney Islands Council and Orkney Quality Food and Drink Ltd.

By working closely together, the group hopes to take forward a number of action plans each year which are geared at increasing the annual value of the Orkney food and drink sector from an estimated £39 million in 1999.

The main objectives of the plan are to:

* raise the total annual turnover of the food processing sector to £50 million by the end of 2005;

* increase the number and diversity of processed products and processing companies;

* improve the profitability, co-operation and efficiency of companies within the sector;

* enhance the relationship between the public sector and the food and drink industry;

* ensure existing facilities meet new legislation and adopt best practice;

* make the industry more attractive as a career for school leavers.

Ken Grant, chief executive of Orkney Enterprise said: "Orkney has an excellent reputation for high quality produce made from the finest natural ingredients.

"Our challenge as a group is to ensure the Orkney food and drink sector builds on this reputation, and increases its overall value to the area and the number of jobs it supports."

The Orkney economy is heavily dependent on the sector with one in ten of all workers in the county employed in agriculture or fishing - a figure well above the Highlands and Islands average.

Stewart Crichton, chairman of Orkney Quality Food and Drink said: "The group will look at ways in which the sector can develop through diversification, new product development and the identification of new markets. However, we will also be looking into how the challenges facing our industry can be overcome.

"These range from supply of labour and purpose-built premises, to high transport costs, the impact of meeting new legislation, and the costs of handling waste.

"Having agreed a joint strategy, the crucial activity will be the development of annual action plans which ensure that the objectives are met within the proposed timescale."

Growing demand for value-added and high quality processed foods has increased in the last 10 years as the major supermarket chains revolutionised the quality end of the convenience food market. Orkney's food and drink sector was quick to react to this demand which was one of the main reasons for the sector doubling its turnover during this time.

Jeremy Baster, director of development and protective services at Orkney Islands Council said: "Food and drink producers in Orkney have clearly reacted well by developing new and innovative products to meet demand in this particular part of the market.

"The formation of this group will allow the council and Orkney Enterprise to work more effectively alongside food and drink businesses to achieve sustained growth for the sector, and best value for the public funds we invest in it - making sure the industry achieves more self sufficiency in the longer term."