Projects share £170k to support region’s small food and drink producers

Seven innovative projects to support small food and drink producers in parts of the Highlands and Islands have been awarded a total of £169,750 through the Small Producers Pilot Fund. 

The successful initiatives in Skye, Easter Ross, Moray, the Outer Hebrides and Argyll and Bute will strengthen local supply chains, provide routes to market for small producers, boost productivity, and enhance access to locally produced food and drink. 

In Skye, crofting partnership Croft Cat secured support to buy a temperature-controlled pasteuriser which will be shared with other small producers. The pasteuriser will enable the creation of value-added goods such as goats milk, cheese and gelato. This investment will improve product quality, increase production and establish a more resilient local dairy supply chain.  

Andrew Airnes from Croft Cat said: “The funding has turned the kernel of an idea into the reality of a collaborative project that benefits not only us but others.”  

In the Outer Hebrides, crofter Anne Maclellan from The Dunes Larder in North Uist received funding to purchase a new modular contained butchery unit and freezer. The new facility will give island producers essential access to local meat processing, significantly cutting food miles. 

Anne said: “For us, it’s been a huge bonus. This project wouldn’t be going ahead without the funding from HIE allowing us to buy good quality kit and providing longevity.”  

In Craigellachie in Moray, Elchies Estate received funding for a secure multi-vend frozen produce machine. This provides a safe, modern retail outlet for perishable goods not currently available locally. This will help increase productivity for local small producers, strengthen the supply chain and improve collaboration among members of the Speyside food network. 

Also in Moray, Thorabella Farm near Dallas will establish a mobile farm shop. This will enable rural communities across Moray to access high-quality produce that’s sustainably home-grown by small producers. 

Two projects in Argyll and Bute also received support. In Rothesay independent producer and retailer Gather Deli Ltd was awarded funding towards the costs of equipment to expand its range of smoked and air-dried products. This will strengthen food production on the Isle of Bute by supporting high quality meat production, strengthening local supply chains and promoting sustainable local-sourced products. 

On the Isle of Ulva, farmer Phil Bertin was given help to buy a shared commercial kitchen modular unit and food production hub for the island. This will facilitate cheese and charcuterie production and provide flexible space for local small producers to develop other value-added products. 

Phil said: “The funding is absolutely transformational… it just wouldn’t have happened without it.”  

Lastly, in Dingwall in Easter Ross, John M Munro Ltd received funding to upgrade abattoir equipment. This will improve the service they offer to small livestock producers helping them to improve yields, reduce waste and enhance product quality.   

The Small Producers Pilot Fund was established by the Scottish Government to provide targeted capital support to small food and drink producers in Scotland. The fund formed part of the Scottish Government’s broader commitment to supporting small producers and local food systems, as set out through its vision for agriculture and associated policy objectives.  

The Scottish Government Agriculture and Rural Economy Directorate invited HIE to deliver the pilot fund during financial year 2025–26 on behalf of Scottish Ministers. The fund provided a total of £500,000 in capital funding across Scotland, with HIE responsible for administering £175,000 capital within the Highlands and Islands with delivery before end March 2026. 

HIE provided capital grants of £10,000 - £50,000 through an open funding call with funding offered at an intervention level up to 100% towards eligible costs. Projects had to deliver shared benefits to multiple small producers and the fund prioritised projects that strengthened local supply chains, improved productivity and energy efficiency, supported collaboration, and sustained rural employment.  

South of Scotland Enterprise (SoSE) administered the pilot fund in the south of Scotland and the Scottish Enterprise region, offering low value grants up to £10k as well as grants of £10,000 - £50,000 for collaborative projects.  

HIE launched the fund in early December with an application deadline of 9 January. The successful projects each received between £10,000 and £47,000. 

Anna Miller, head of tourism, food and drink at HIE said: 

“The food and drink sector is one of our most important industries in the Highlands and Islands, and provides valuable year-round rural employment, helping to sustain communities and attract and retain talent.  

“Most of the region’s producers are relatively small-scale enterprises with very limited resources. This fund enabled innovative projects that benefit small producers around the region and strengthen local supply chains.  We’re very pleased we’ve been able to support these seven initiatives and look forward to seeing the benefits they bring to small producers.” 

Rural Affairs Secretary Mairi Gougeon said: 

“Scotland’s small producers are part of our rural heartbeat and make unique contributions to Scottish agriculture and our local food supply chains. To maximise their impact, we have tripled our capital investment in this sector to £1.5 million in the coming financial year.  

“I am pleased to see the range of small producers, businesses and the networks supporting them across Scotland that will benefit from our Small Producer Pilot Fund through HIE and SOSE. This funding has enabled us to test demand for this type of small producer support and we will assess the impact and benefit gained by small producers in building stronger relationships with the enterprise agencies.”