Fruit and Vegetables Aid Scheme in Scotland: call for input

Background

The Fruit and Vegetables Aid Scheme aims to incentivise farmers and growers in a variety of sectors to form producer organisations to encourage collaboration, strengthen their position in the supply chain, and increase competitiveness. Producer organisations also provide a mechanism for promoting environmentally sound cultivation practices and production techniques, and climate change mitigation.

Since the UK’s exit from the EU, the same scheme rules have applied. Financial assistance is payable to producer organisations in the horticulture sector that submit an operational programme which meets Fruit and Vegetables Aid Scheme regulatory requirements and fits within the UK Strategy and Environmental Framework. An operational programme is a business plan which is submitted as a key part of a funding application. Operational funds are part financed by contributions from producer organisation members.

The support provided by the Fruit and Vegetables Aid Scheme has played an important role in sustaining the Scottish edible horticulture sector. In an industry where margins are low and operating at scale is necessary, the encouragement to collaborate has helped a large proportion of Scottish growers, particularly small to medium-sized primary producers.

The edible horticulture industry is a particularly tough food retailing environment. It is one that has been impacted by various geopolitical and climate related events. Success is dependent on delivering produce to exacting standards at competitive prices. Match-funded grant aid supports growers to plan and continually develop their activities. It helps to maintain investment while reducing the risk of that investment, which in turn generates improved productivity and efficiency, higher rates of return, greater customer value and also maintains grower confidence.

To date, the Fruit and Vegetables Aid Scheme has been delivered largely on a UK-wide basis. The Rural Payments Agency (RPA) has carried out delivery functions on behalf of each nation, including Scottish Ministers for Scotland. However from the 2026 scheme year and onwards, the scheme in Scotland will be delivered directly by the Scottish Government and it is therefore considered important to explore changes that could be made to ensure the scheme continues to support Scottish growers in the best way possible.