23/7/2002

Wale Deputy First Minister Mike German today (Tuesday July 23) announced £27 million in investment into the agri-food sector.

Speaking at a Welsh Development Agency / Agri-Food Partnership breakfast reception at the Royal Welsh Show he said: "I am delighted to announce that 33 Processing and Marketing Grants (PMGs) have been approved since the scheme was launched last autumn.

"29 PMGs have been approved in the Objective 1 area leading to over £24 million in investment, and 4 in non-Objective 1 area, leading to over £3.2 million investment."

PMGs operate throughout Wales using the European Agriculture Guidance and Guarantee Fund (EAGGF), support from the Rural Development Plan for Wales and Welsh Assembly Government resources, and are being delivered by the WDA. Objective 1 area companies receive up to 40% and in non-Objective 1 areas up to 30%.

EAGGF funding aims to improving and supporting the competitiveness of agriculture as a key activity in rural areas and to ensure the diversification of the economy in rural areas.

The Minister went on to announce that Oriel Jones (now part of Dungannon
Meats) of Llanybydder had been awarded a £1.2 million grant, which is the
maximum available under PMG towards a £3.5 million investment.
This will be used to extend the abattoir and increase the capacity of lambs
processed from 20,000 per week to 25,000. The company's aim is to increase volume of export business to Europe.

Those present also heard that Oriel Jones' investment of £1.6 million into
Caerfagu abattoir near Llandrindod Wells should result in the re-opening of the site next week. This has been brought about by partnership working
between the company and the Welsh Meat Company, who will be processing much of its meat products there.

Dairygold has also received the maximum £1.2 million towards a £3,128,000 project to expand the existing cheese packing capacity at Felinfach, Lampeter.

This will be used to increase production lines from four to six to increase
production capacity to 27,000 tonnes of cheese per annum, to meet demand and service existing and new customers.

South Caernarfon Creameries (SCC) also announced its new contract to supply Dairy Crest with its Marks and Spencer Welsh branded Milk. This news comes after a 2.5 million expansion of the co-operatives liquid dairy, which has been completed with 40% funding from a Processing and Marketing Grant.

Separately, PMG is also helping the company to undertake investment of £2.6 million to expand its cheese-making facilities. Both projects will increase the number of farms supplying SCC from 178 to 220 and significantly raise milk consumption.

The Authentic Curry Company at Hirwaun has been awarded PMG of £259,532 for an expansion project totalling £823,514. The company is well-known for itsinnovative product range, including Welsh Black Beef Curry, Welsh Lamb and

Leek Curry, Tan y Draig (The Dragon's Fire) and Sws y Ddriag (The
Dragon's Kiss). The Company already source 90% of its ingredients from
Wales, and so satisfying a basic requirement of the PMG scheme.

The Minister also announced that Aria Foods, a wholly owned subsidiary of
Farmers First plc, had been awarded a £400,000 PMG towarda a £1m project to manufacture a brand new product - meat strips. The company will be manufacturing lamb, beef and chicken strips for retail, using meat sourced from Welsh and English farms who are shareholders of Farmers First (currently 1263 shareholders in Wales). There is no similar product in the UK at present.



Full list of grants (excluding those previously publicised)

Puffin Produce of Withybush, near Haverfordwest will receive a capital
grant of £269,761 as part of a £674,404 development to construct an
environmentally controlled vegetable and potato store and processing
facility.

Maes y Felin of Whitland, Carmarthen, will receive £10,498 to buy processing equipment to improve its production of organic poultry. The total cost of this project will be £26,245.

Factory Yard Cwmann Ltd of Lampeter, Carmarthenshire will receive £785,340 in capital grants as part of a £1,963,350 project to build an incinerator for animal carcasses on its existing site.

A J Rees & Sons Ltd, a butchery business based in Narberth, are to receive
£23,596 in capital grants as part of a £58,992 project to improve buildings
on their existing site and to buy processing equipment.

The Pembrokeshire Meat Company of Milford Haven, Pembrokeshire will receive £236,400 in capital grants as part of a £591,000 project to develop a modern, medium-sized, new abattoir.

Upton Farm Frozen Foods Ltd are set to receive a £44,128 capital grant to increase the coldstore capacity of their existing site in Pembroke Dock. The total cost of the project will be £110,322.

Mary's Farmhouse produce meringues and ice cream at their site in Crymych, Pembrokeshire. They will be given a capital grant of £53,066 towards a £132,665 project to buy new equipment and improve the buildings on their existing site.

Conwy Valley Meats of Llanrwst will be given a £48,910 capital grant to
improve the added value meat processing capacity of their existing site.
The total project spend will be £122,276.

Blas ar Fwyd of Llanrwst will receive a PMG of £54,816 towards total
investment of£137,041 for expansion of premises to develop added value
processing of specialist food products.

Llaeth y Llan of Llanefydd, Denbighshire have been awarded a capital grant
of £36,000 towards new yoghurt packaging machinery. In total £90,000 will
be invested in this new equipment.

Rachel's Organic Dairy of Aberystwyth will be given a revenue grant of
£535,161 towards a £1,337,903 marketing and promotions programme.

The Knobbly Carrot Co of Lampeter will receive a capital grant of £40,000
to help it develop a new organic salads and soups processing facility. The
total project spend will be £100,000.

West Wales Halal Chicken of Llandre, Ceredigion are set to receive £74,000 in capital grants towards a new, £185,000 halal poultry processing
facility.

Teifi Cheese of Llandysul, Ceredigion have been awarded a capital grant of
£19,294 towards a new, £48,237 cheese processing and storage facility.

Cig Oen Caron of Tregaron, Ceredigion will receive a capital grant of £104,000. This will help fund a £260,000 expansion of the cutting and
packing facilities at their existing abattoir.

The Pencae Bakery is a small bakery in Llanarth, Ceredigion. It will receive £5,777 under the PMG scheme to improve its processing facilities.
The total cost of this project will be £14,443.

F Layton and Sons are based at Pen y Bont, Powys. They will receive a
capital grant of £11,027 towards a £36,756 project to build an on-farm meat cutting facility.

Brace's Bakery of Crumlin, Gwent will receive £943,912 in capital grants as
part of a £3,000,000 expansion to its existing site, and to buy new processing and packaging equipment to help the development and marketing of new products.

Source:	Welsh Development Agency
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