Argyll and Bute creamery scheme: state aid

The purpose of the Argyll and Bute creamery scheme is to support the local creameries in rural areas which is aligned to our vision for agriculture. We committed to supporting Scotland's agricultural and rural communities.

The vision for agriculture is that Scotland has a green, innovative and profitable agriculture industry which is outward-looking and resilient, supporting economic growth, environment, communities and contributes to global food security.

We will identify and work with the owners of creameries and the local farming community to try and achieve a long term sustainable future for the creameries. Many jobs rely on the local creameries functioning as they are located in a remote part of Scotland and the creameries are key to the local economy.

To help achieve this, we will provide grant assistance in compliance with State aid regulations to help provide grant aid that can be used for maintenance and improvements under Domestic Legislative Powers: Sections 4 and 6 of the Small Landholders (Scotland) Act 1911.

EU notification  

This scheme has been notified to the European Commission under Commission Regulation (EU) No 702/2014

The scheme will operate and comply fully with the conditions of Article 17: Aid for investments in connection with the processing of agricultural products and the marketing of agricultural products.

In particular article 17(5) provides that “aid shall cover the following eligible costs: a) the “construction acquisition, including leasing, or improvement of immovable property, with land only being eligible to an extent not exceeding 10% of total eligible costs of the operation concerned”.

Article 17(9)(d) limits the aid at 40% of the amount of eligible costs.

Aid granted to undertakings in difficulty is excluded from the scope of this Regulation.

Duration 

The scheme will run from 01/04/2019 to 31/12/2019.

Budget  

The total budget shall not exceed £400,000 over the period of the scheme.

Distribution  

The scheme is not open to general calls or expressions of interest. Instead grant funding shall be distributed by Scottish Government to allow for the maintenance and improvements of sites which qualify for aid under this scheme.

Target sector 

Primary agriculture 

Dissemination  

Completed project reports will be made available on this website.