The Seedpod project aims to realise an ambition to double the size of north east Scotland’s £2.2 billion food and drink sector.

Opportunity North East (ONE), which is leading the project, said the investment will put the region’s manufacturing and processing businesses at the forefront of innovation, productivity and sustainability, increasing high-value exports and creating new jobs. It will play a key role in green economic recovery, helping businesses and the sector deliver low-carbon production and contribute to net-zero goals.

SeedPod aims to increase sector turnover by 5% per annum. It will help established companies accelerate growth through innovation and technology adoption, market and product development, global consumer focus and provide start-up production space and development facilities for high-growth new businesses.

The hub will be located on Scotland Rural College’s (SRUC) Craibstone campus, near Aberdeen. A public procurement process is underway to appoint a main contractor for the construction phase, with the new-build project programmed to start later this year.

Keppie Design was appointed as architect and lead consultant on the hub last year.

SeedPod includes £10 million of capital funding provided jointly by the UK Government and Scottish Government via the Aberdeen City Region Deal (ACRD) – a partnership between both governments, ONE, Aberdeen City Council and Aberdeenshire Council. ONE is the lead ACRD partner for delivery of SeedPod, has committed £4.4 million of funding towards the delivery of SeedPod’s objectives and has set up Food Hub (NES) Limited with an industry board to deliver the project. SRUC is a strategic delivery partner and is providing the site for SeedPod.

Patrick Machray OBE, chair of Food Hub (NES) Ltd and vice chair of ONE, said: “SeedPod is the critical ingredient that will help north east Scotland’s significant food and drink sector to innovate, accelerate growth, increase productivity and target foods of the future products at high-margin markets. It will provide young businesses with essential space to grow in its production incubator units, support established companies with productivity and market development, and is a strategic asset at a critical time for national sector recovery and growth.

“This is a transformational project for realising the sector’s green growth ambition. SeedPod will increase the value of exports and the jobs that food and drink manufacturers and processors provide in rural and urban communities.

“Speed of delivery and impact are the focus for the Food Hub (NES) board and our partners. SeedPod will be the place to grow together and engage with our most exciting companies of the future and ambitious established businesses,” said Mr Machray.

SeedPod will be the go-to industry development hub providing specialist support and facilities for growing start-up, early-stage and established businesses that include:

• sector-specific business growth, leadership and mentoring programmes;
• access to global consumer and market insights;
• 12 commercial-grade manufacturing and production incubator units and two development kitchens; and
• full-service managed production and storage space; presentation areas; co-working and collaboration space, and demonstration space to pilot processes and technology.

More than 22,000 people work in Aberdeen and Aberdeenshire food and drink businesses. The region accounts for more than 20% of Scotland’s total food and drink outputs with sustainable, premium supply chains from farm and fishery to consumer.

The sector’s growth is essential to the region’s future economy. It supports the national drive to premiumise food and drink in global export markets while supporting higher-value jobs and manufacturing at home.