Seven small food and drink projects across the Highlands and Islands have shared £169,750 to scale up production, strengthen local supply chains and bring more local produce to market.
The investment comes from the Small Producers Pilot Fund, delivered in the region by Highlands and Islands Enterprise (HIE) on behalf of the Scottish Government, and targeted at collaborative projects that support multiple small producers. Successful initiatives are spread across Skye, Easter Ross, Moray, the Outer Hebrides and Argyll and Bute, with awards ranging from £10,000 to £47,000.
On Skye, crofting partnership Croft Cat has secured support to buy a temperature‑controlled pasteuriser that will be shared with other small producers, unlocking new value‑added products such as goat’s milk, cheese and gelato while improving product quality and resilience in the local dairy supply chain. Andrew Airnes from Croft Cat said the funding had “turned the kernel of an idea into the reality of a collaborative project that benefits not only us but others.”
In North Uist, The Dunes Larder is using its grant to purchase a modular contained butchery unit and freezer, giving island producers vital local access to meat processing and significantly cutting food miles. Owner Anne Maclellan described the award as a “huge bonus”, saying the project would not be going ahead without HIE funding to invest in good quality equipment and long‑term capacity.
Two Moray ventures are also set for growth. At Craigellachie, Elchies Estate will install a secure multi‑vend frozen produce machine, providing a modern retail outlet for perishable goods and helping Speyside producers boost productivity and collaborate more closely. Nearby, Thorabella Farm near Dallas will launch a mobile farm shop, taking sustainably home‑grown produce into rural communities that currently lack regular access to local food.
In Argyll and Bute, Rothesay‑based Gather Deli Ltd will use its award to buy equipment to expand its range of smoked and air‑dried products, strengthening food production on the Isle of Bute and promoting sustainably sourced local meat. On the Isle of Ulva, farmer Phil Bertin is establishing a shared commercial kitchen and food production hub to support cheese, charcuterie and other new value‑added lines, a change he described as “absolutely transformational”.
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The final project, in Dingwall in Easter Ross, will see John M Munro Ltd upgrade abattoir equipment, improving services for small livestock producers, helping them increase yields, cut waste and enhance product quality. Across all seven awards, the emphasis is on collaboration, shared infrastructure and long‑term resilience for small‑scale businesses operating in some of Scotland’s most rural communities.
The Small Producers Pilot Fund forms part of the Scottish Government’s broader commitment to local food systems and sits within its wider vision for agriculture and rural economies. Administered by HIE in the Highlands and Islands, the pilot made £175,000 of the national £500,000 allocation available in the region in 2025–26, offering capital grants of £10,000–£50,000 at up to 100 per cent intervention for projects that deliver shared benefits to multiple producers. South of Scotland Enterprise has been responsible for delivering similar support in the south of Scotland and the Scottish Enterprise area, blending low‑value grants with larger collaborative awards.
HIE’s head of tourism, food and drink, Anna Miller, said the sector provides valuable year‑round rural employment and plays a central role in sustaining communities and attracting talent to the Highlands and Islands. She said the pilot has enabled innovative projects that bolster small producers and strengthen local supply chains, and that HIE looks forward to seeing the benefits ripple out across the region. Rural Affairs Secretary Mairi Gougeon described Scotland’s small producers as “part of our rural heartbeat” and confirmed that capital investment for this part of the sector will rise to £1.5 million in the coming financial year, with the pilot helping test demand and shape future support.
