Scottish food and farming businesses have been awarded a share of £5m to invest in infrastructure and purchase new equipment.
In total 30 businesses will receive Food Processing, Marketing and Cooperation (FPMC) grants to support the food supply chain.
According to the Scottish government, the £5 million grant will safeguard 1,386 jobs and create 97 new ones.
The projects include improving storage facilities for oats, investing in new root vegetable processing equipment and purchasing new equipment to set up a Hebridean charcuterie business.
Rural economy secretary Fergus Ewing said the Covid-19 crisis had underlined the importance of a strong food supply chain and an increased consumer desire for locally produced food.
"This support will enable established producers to look to the future and capitalise on emerging marketing opportunities, as well as offer support to start-up businesses.
“Investing in local producers is an important step to help sustain and create employment opportunities within our rural communities.”
Root vegetable grower Nessgro Ltd at Dalcross, near Inverness, has been awarded more than £230,000 to purchase and install a range of technically advanced plant and equipment.
The move will allow it to increase capacity to meet the demands of its current customer base and to increase the shelf life to support customers’ need for reduced waste.
Benzies (Partnership) near Turriff will receive almost £400,000 to diversify from retail packing to further processing of vegetables using out of spec and damaged carrots and potatoes where possible to reduce waste.
Denhead Farms, based in Coupar Angus, Blairgowrie will receive more than £300,000 to build and equip a new facility for the drying and dicing of vegetable waste, creating new products and adding value.
Stuart Allan of Melrose Farms near Banff, Aberdeenshire, said his grant will be used to build a new facility on our farm for dressing, drying and storing oats.
"It will also help support our future plans for the business to grow,” he said.
