A Marketing Development Scheme worth #1.5m over the next three years

to Scotland's agri-food industry was announced yesterday by the Scottish

Agriculture Minister Sir Hector Monro (writes Ian Morrison).

The money is part of a #10m package of help to British food suppliers

launched at an Agricultural Development and Advisory Service (ADAS) food

industry conference in London.

Calling on Scottish food producers to make full use of the new scheme,

Sir Hector said: ''New 50% grants of up to #150,000 will be available to

help producers, processors, and others, to sharpen up management and

marketing practice.

''This new scheme builds on the Group Marketing Grants introduced in

1992, and has been designed to respond to industry needs. It will extend

help to the processed food sector as well as primary produce.

''The Market Development Scheme represents a very significant package

of help for the agri-food industry. It will improve our competitiveness

in the world markets, and this must be good news for Scotland, which has

such wonderful food products to promote.''

Under the new scheme, grants can be used towards the cost of an

outside director to bring in new expertise and fresh thinking to a

company looking to expand its markets. Or, they can contribute towards

the salaries of key staff and training.

For producer groups, the grants can help towards the cost of expansion

or mergers, including recruitment or redundancy costs. Alternatively,

they could be used for market research and feasibility studies.

And for industry bodies, they can assist in developing their market

sectors, for example by gathering export intelligence, or quality

branding.

In the wake of the new scheme, leaders of the English National

Farmers' Union say they are launching a feasibility study into ways of

further developing market opportunities for Britain's farmers and

growers. A key aim of the NFU's own 'Food from the Countryside'

initiative will be to help members and marketing organisations to

collaborate more effectively.

''Agriculture and horticulture must be better equipped to meet our

customers' needs while, at the same time, we have to avoid any

unnecessary duplication of marketing initiatives,'' said union president

Sir David Naish.

A fresh initiative to boost Britain's share of European and world food

and drink markets has also been unveiled by Food From Britain, the

Government-backed marketing agency. This will involve raising a further

#1.1m from the food and drink industry in commercial projects over the

next three years, expanding existing markets and creating new ones.

FFB chairman Geoffrey John, who disclosed a 1% cut in Britain's food

and drink trade gap to #5.8bn last year, added: ''The time for talking

about the trade gap is past. Now we must see some action.''

* THE Scottish NFU are asking hill farmers and crofters to provide

details on how the severe winter and spring has affected their

businesses. The union is issuing a questionnaire about the impact of

this on their incomes.

NFU hill farming convener John Scott said: ''The picture which emerged

from last week's meeting of the hill farming sub-committee was one of

sharply increased costs and lambing losses brought about by the severe

weather last winter and this spring.

''There were also strong indications of further cost increases this

coming winter, owing to the probability that this year's silage and hay

crops throughout Scotland will be lighter than normal. The Scottish

Office are keen to know the results of this survey, so I appeal to

fellow hill farmers for a good response.''