The government has confirmed that a small abattoir fund - worth £4 million - will open by the end of this year to help the struggling sector.
Opportunities will also be identified to remove 'unnecessary burdens' for small abattoirs to make it easier for them to operate.
According to the government, which announced the details on Back British Farming Day, this would help farmers reach local and international markets.
There has been a huge decline in small abattoirs in recent years, with the most recent estimates showing only 49 remain in England, Wales and Scotland.
During the period between 2019 and 2021, the sector saw the closure of 14 small, family-run abattoirs.
If closures continued at the current rate, there will be none left open by 2030, according to campaigners at the Sustainable Food Trust.
Fears have also been raised over the negative impact of these closures on the rural economy.
The government said its £4m small abattoir fund – opening by the end of 2023 – will help "improve productivity, enhance animal health and welfare, and encourage investment in new technologies".
"The support for small abattoirs is the latest move by government to increase fairness in the supply chain," a Defra spokesperson said.
"New regulations for the dairy and pig sectors will be introduced next year, and consultations on eggs and horticulture supply chains launch later this year."
The Sustainable Food Trust said the funding was 'welcome news' as it would be "integral to the future of local, sustainable and high welfare farming".
The group added that other critical issues, around regulation and inspection in particular, should be looked at and tackled in the coming months.
Megan Perry, head of policy and campaigns said: “We are grateful to the ministers and government officials who have shown a willingness to listen to those from industry and understand the important role that abattoirs play.
"Funding will be vital to help the small abattoirs modernise and thrive. Their services are the cornerstone of sustainable, local meat supply chains.”
In June, a small abattoir based in Wigton in Cumbria closed its doors for good in a move which rocked the local farming sector.
Black Brow abattoir, which was seen as a lifeline for remote farmers in Cumbria, shut down for business on 7 July 2023 after 20 years.