OVER £5 million in investment for Wales agri-food sector was announced at the Royal Welsh winter fair.

The Welsh Development Agency and National Assembly announced a series of processing and marketing grants (PMGs), which will mean an extra £5,299,380 in investment - £1,904,615 from grant aid and £3,394,765 from the companies themselves.

PMGs are designed to help processors and farmers in Wales become more competitive, respond to consumer demand and add more value to their produce through capital grant support for processing facilities and revenue grant support to improve marketing.

The schemes operate throughout Wales using a combination of Objective One funding, support from the Rural Development Plan for Wales and National Assembly resources, and are being delivered by the WDA.

Companies being offered PMG money are: Capestone Organic Poultry (full story below); South Caernarfon Creameries; Village Bakery; KK Wholefoods.

The WDA is a major sponsor of this years winter fair. Around 40 producers from all over Wales will be exhibiting as part of the WDAs true taste experience showcase, selling a huge variety of produce.

A Pembrokeshire organic poultry business is to expand its processing unit thanks to the major agri-food grant.

Family-run Capestone Organic Poultry Limited, currently operating at peak production to meet orders for the Christmas market, has been awarded a £63,804 grant in a joint Welsh Development Agency and National Assembly for Wales initiative.

The £5.2 million series of processing and marketing grants were announced last Tuesday at the Royal Welsh Agricultural Societys winter fair.

Capestone Organic Poultry Limited, near Haverfordwest, is run by the Scale family which rears and processes organic chickens and turkeys. It was one of four Welsh companies to benefit from a scheme designed to help processors and farmers in Wales to become more competitive and to add value to their produce.

The Scale family will use the grant to help pay for the expansion of its processing unit. A new study reveals that the market the company is supplying is a buoyant one.

A report published by the Soil Association, the UKs leading organic campaign group, indicates that organic food sales are rising faster in Britain than in any other European country.

Last year, three quarters of households made at least one organic purchase, contributing to the £802 million of organic food sold in British shops. The figure for the previous 12 months was £605 million.

Capestone is among 1,675 British companies licensed to produce organic food, a rise of more than half on the previous years figure.

Another is Cambrian Organics Limited which made its debut at the winter fair. The group is supported by 16 livestock farmers from Pembrokeshire, Carmarthenshire, Ceredigion and Powys who have joined forces to market their lamb and beef direct to the public.