Digital Dairy Chain: Collaborative R&D and growth
UK registered organisations can apply for a share of up to £2 million for business focussed innovation in advanced and high value dairy production and manufacturing. This funding is from Digital Dairy Chain for Cumbria, South and West Scotland.
- Competition opens: Monday 17 April 2023
- Competition closes: Wednesday 31 May 2023 11:00am
This competition is now closed.
Competition sections
Description
Innovate UK, part of UK Research and Innovation, will work with Digital Dairy Chain for Cumbria, South and West Scotland, led by Scotland’s Rural College (SRUC). They will invest up to £2 million in innovation projects.
These projects will stimulate an uplift in the region’s economy through inclusive and innovation led growth.
The aim of this competition is to support business focussed innovation in Cumbria, South and West Scotland. This is to support the transition to net zero and deliver improved productivity and sustainability in advanced and high value dairy production and manufacturing. Your project should focus on one or more of the following:
- novel and high value products from dairy systems
- decarbonising dairy production and manufacturing
- waste minimisation and resource recirculation
- reduced environmental impact and increased sustainability, for example biodiversity, soil, air and water quality
- sensor development and digitisation to improve productivity, welfare of staff and animals and product quality, including nutritional characteristics
- value addition in the dairy supply chain
Funding type
Grant
Project size
Your project’s total grant funding request must be between £50,000 and £350,000.
Who can apply
Any awards given to primary agricultural producers are subject to the green box exemption under the World Trade Organisation (WTO) Agreement on Agriculture. Please see further guidance on green box subsidies here WTO Guidance for support in Agriculture.
Applicants receiving this type of support must ensure that there is minimal to no distortion of trade and comply with the requirements of Annex 2 of the Agriculture Agreement.
Your project
Your project must:
- have a total grant funding request between £50,000 and £350,000
- start from 1 October 2023
- end by 31 December 2025
- last between 6 and 24 months
- carry out at least 75% of its project work in Cumbria, South or West Scotland
- intend to exploit the results in Cumbria, South or West Scotland
You must only include eligible project costs in your application.
Under current restrictions, this competition will not fund any procurement, commercial, business development or supply chain activity with any Russian or Belarusian entity as lead, partner or subcontractor. This includes any goods or services originating from a Russian or Belarusian source.
If your project’s grant funding request or duration falls outside of our eligibility criteria, you must provide justification by email to support@iuk.ukri.org at least 10 working days before the competition closes. We will decide whether to approve your request.
If you have not requested approval or your application has not been approved by us, you will be made ineligible. Your application will then not be sent for assessment.
Lead organisation
To lead a project your organisation must:
- be either a UK registered business of any size or a UK farming business of any size
- be able to evidence that you are an established business, including sole traders and partnerships
- have a UK bank account
- be based in Cumbria, South or West Scotland or carry out significant economic activity in that region
- collaborate with other UK registered organisations
More information on the different types of organisation can be found in our Funding rules.
Academic institutions and research and technology organisations (RTOs) cannot lead a project.
Project team
To collaborate with the lead, your organisation must be a UK based farmer or one of the following UK registered:
- business of any size
- academic institution
- charity
- not for profit
- public sector organisation
- research and technology organisation (RTO)
Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Once accepted, partners will be asked to login or to create an account and enter their own project costs into the Innovation Funding Service.
To be an eligible collaboration, the lead and at least one other organisation must apply for funding when entering their costs into the application.
Collaborations with Digital Dairy Chain research organisations are encouraged. These organisations are:
- Scotland’s Rural College (SRUC)
- University of Strathclyde
- University of the West of Scotland
- CENSIS, part of the University of Glasgow
Non-funded partners
Your project can include partners that do not receive any of this competition’s funding. Their costs will count towards the total project costs.
Subcontractors
Subcontractors are allowed in this competition.
Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.
You can use subcontractors from outside Cumbria, South or West Scotland but you must make the case in your application as to why you could not use suppliers from the specified region.
You must provide a detailed rationale and provide evidence of the potential UK subcontractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use a subcontractor from outside the regions specified.
All subcontractor costs must be justified and appropriate to the total project costs.
Number of applications
A business can only lead on two applications within this competition but can be included as a collaborator in a further two applications.
If a business is not leading any application it can collaborate on any number of applications within this competition.
Research organisations, charities, not for profit, public sector organisations and research and technology organisations (RTOs) can collaborate on any number of applications.
Previous applications
You can use a previously submitted application to apply for this competition.
We will not award you funding if you have:
- failed to exploit a previously funded project
- an overdue independent accountant’s report
- failed to comply with grant terms and conditions
Subsidy control (and State aid where applicable)
This competition provides funding in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022 (legislation.gov.uk).
Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.
EU State aid rules now only apply in limited circumstances. Please see our general guidance to check if these rules apply to your organisation.
Further Information
If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.
You must always make sure that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.
This aims to regulate any advantage granted by a public sector body which threatens to, or actually distorts competition in the United Kingdom or any other country or countries.
Funding
Up to £2 million has been allocated to fund innovation projects in this competition. Funding will be in the form of a grant.
If your organisation’s work on the project is commercial or economic your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.
For industrial research projects, you could get funding for your eligible project costs of:
- up to 70% if you are a micro or small organisation
- up to 60% if you are a medium sized organisation
- up to 50% if you are a large organisation
For more information on company sizes, please refer to the company accounts guidance.
If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.
Research participation
The research organisations undertaking non-economic activity as part of the project can share up to 40% of the total eligible project costs. If your consortium contains more than one research organisation undertaking non-economic activity, this maximum is shared between them. Of that 40% you could get funding for your eligible project costs of up to:
- 80% of full economic costs (FEC) if you are a Je-S registered institution such as an academic
- 100% of your project costs if you are an RTO, charity, not for profit organisation, public sector organisation or research organisation
Your proposal
The aim of this competition is to support business focussed innovation in Cumbria, South and West Scotland. This is to support the transition to net zero and deliver improved productivity and sustainability in advanced and high value dairy production and manufacturing. Digital Dairy Chain want to encourage socially inclusive innovation for individuals to contribute and benefit from economic growth in Cumbria, South and West Scotland.
We encourage projects that:
- provide solutions that tackle new or emerging needs
- demonstrate a realistic potential to support business growth, scale-up and job creation
- deliver benefit to Cumbria, South and West Scotland, as well as further afield
- enable academic researchers to collaborate with businesses to help further develop and translate research towards commercially relevant impact and wider societal outcomes
- consider developing novel approaches to monitor the effectiveness of products
Your activities can solve challenges at any point in the dairy value chain, including dairy farming, milk transport and logistics, as well as the processing of milk and manufacture of other dairy products.
Portfolio approach
We want to fund projects across a variety of technologies, geographic sub-regions, markets, technological maturities and theme. We call this a portfolio approach.
Portfolio consideration will include:
- sub-regional balance
- place in the dairy value chain, notably activities directed at dairy farms, milk transport, milk processing and dairy product manufacture
- research partner participation
- participation of women and young people in projects
Specific themes
Your project can focus on one or more of the following:
- novel and high value products from dairy systems
- decarbonising dairy production and manufacturing
- waste minimisation and resource recirculation
- reduced environmental impact and increased sustainability, for example biodiversity, soil, air and water quality
- sensor development and digitisation to improve productivity, welfare of staff and animals, and product quality including nutritional characteristics
- value addition in the dairy supply chain
This list is not intended to be exhaustive or limiting.
Research categories
Projects we will not fund
We are not funding projects that:
- do not demonstrate potential to positively impact on the economy of Cumbria, South or West Scotland
- deal with plant-based alternatives to milk
- mainly install currently available technologies and involve minimal innovation
- only involve product testing of agrochemicals, pharmaceuticals, feeds or additives
We cannot fund projects that are:
- dependent on export performance, for example giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
- dependent on domestic inputs usage, for example giving a subsidy to a baker on the condition that it uses 50% UK flour in their product
- 17 April 2023
- Competition opens
- 20 April 2023
- Applicant briefing: Watch the recording
- 31 May 2023 11:00am
- Competition closes
- 30 June 2023
- Applicants notified
Before you start
You must read the guidance on applying for a competition on the Innovation Funding Service before you start.
Before submitting, it is the lead applicant’s responsibility to make sure:
- that all the information provided in the application is correct
- your proposal meets the eligibility and scope criteria
- all sections of the application are marked as complete
- that all partners have completed all assigned sections and accepted the terms and conditions (T&Cs)
You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.
What we ask you
The application is split into 3 sections:
- Project details.
- Application questions.
- Finances.
Accessibility and inclusion
We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes providing support, in the form of reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us. Read more on how we are making our application process more accessible and inclusive for everyone.
You must contact us as early as possible in the application process. We recommend contacting us at least 15 working days before the competition closing date to ensure we can provide you with the most suitable support possible.
You can contact us by emailing support@iuk.ukri.org or calling 0300 321 4357. Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).
1. Project details
This section provides background for your application and is not scored.
Application team
Decide which organisations will work with you on your project and invite people from those organisations to help complete the application.
Application details
Give your project’s title, start date and duration.
Project summary
Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application.
Your answer can be up to 400 words long.
Public description
Describe your project in detail and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This could happen before you start your project.
Your answer can be up to 400 words long.
Scope
Describe how your project fits the scope of the competition. If your project is not in scope it will not be sent for assessment. We will tell you the reason why.
Your answer can be up to 400 words long.2. Application questions
The assessors will score all your answers apart from questions 1 to 4. You will receive feedback for each scored question. Find out more about how our assessors assess.
You must answer all questions. Your answer to each question can be up to 400 words long. Do not include any website addresses (URLs) in your answers.
Question 1. Applicant location (not scored)
You must state the name and full registered address of your organisation and any partners or subcontractors working on your project.
We are collecting this information to understand the geographical location of all applicants.
Question 2. Project location (not scored)
Where is the work on your project being undertaken?
You must confirm:
- where in Cumbria, South or West Scotland you intend to undertake the work
- what work will be carried out in the Cumbria, South or West Scotland area
Question 3. Equality, diversity and inclusion (not scored)
How have you incorporated equality, diversity and inclusion (EDI) into your project delivery and project outcomes, particularly in relation to women and young people (18 - 30 years old)?
Describe any challenges or opportunities relating to EDI arising from your project, and the methods and approaches used to address them:
- during project delivery
- for governance
- for project team and advisory boards
- for stakeholder and end-user engagement
Please note: Questions relating to EDI will not form part of the funding decision but may be used for portfolio management and to inform the development of EDI activities for the programme.
Question 4. Where did you hear about the scheme (not scored)
How did you become aware of this funding opportunity?
Using the list below, state how you heard about this competition. You may list as many that apply.
- Innovate UK portal
- KTN
- Digital Dairy Chain (DDC) website
- DDC promotion or events
- DDC Innovation Broker
- Facebook or Instagram
- Other
Your answer can be up to 100 words long.
Question 5. Need or challenge
What is the business need, technological challenge, or market opportunity behind your innovation?
Explain:
- the main motivation for the project
- the business need, technological challenge or market opportunity
- whether you have identified any similar innovation and its current limitations, including those close to market or in development
- any work you have already done to respond to this need, for example if the project focuses on developing an existing capability or building a new one
- the wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations, using our Horizons tool if appropriate
Question 6. Approach and innovation
What approach will you take and where will the focus of the innovation be?
Explain:
- how you will respond to the need, challenge or opportunity identified
- how will you improve on the similar innovation that you have identified
- whether the innovation will focus on existing technologies in new areas, the development of new technologies for existing areas or a totally disruptive approach
- the freedom you have to operate
- how this project fits with your current product, service lines or offerings
- how it will make you more competitive
- the nature of the outputs you expect from the project (for example report, demonstrator, know-how, new process, product or service design) and how these will help you to target the need, challenge or opportunity identified
You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.
Question 7. Team and resources
Who is in the project team and what are their roles?
Explain:
- the roles, skills and experience of all members of the project team that are relevant to the approach you will be taking
- the resources, equipment and facilities needed for the project and how you will access them
- the details of any vital external parties, including subcontractors, who you will need to work with to successfully carry out the project
- the current relationships between project partners and how these will change as a result of the project
- any roles you will need to recruit for
You can submit one appendix with a short summary of the main people working on your project to support your answer. It must be a PDF, up to 4 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.
Question 8. Market awareness
What does the market you are targeting look like?
Describe:
- the target markets for the project outcomes and any other potential markets (domestic, international or both)
- the size of the target markets for the project outcomes, backed up by references where available
- the structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframes
- the target markets’ main supply or value chains and business models, and any barriers to entry that exist
- the current UK position in targeting these markets
- the size and main features of any other markets not already listed
If your project is highly innovative, where the market may be unexplored, describe or explain:
- what the market’s size might be
- how your project will try to explore the market’s potential
Question 9. Outcomes and route to market
How are you going to grow your business and increase long term productivity as a result of the project?
Explain:
- your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market position
- your target customers or end users, and the value to them, for example, why they would use or buy your product
- your route to market
- how you are going to profit from the innovation, including increased revenues or cost reduction
- how the innovation will affect your productivity and growth, in both the short and the long term
- how you will protect and exploit the outputs of the project, for example through know-how, patenting, designs or changes to your business model
- your strategy for targeting the other markets you have identified during or after the project
If there is any research organisation activity in the project, describe:
- your plans to spread the project’s research outputs over a reasonable timescale
- how you expect to use the results generated from the project in further research activities
Question 10. Wider impacts
What impact might this project have outside the project team?
Describe and, where possible, measure the economic benefits from the project such as productivity increases and import substitution, to:
- external parties
- customers
- others in the supply chain
- broader industry
- the UK economy
Describe and, where possible, measure:
- any expected impact on government priorities
- any expected environmental impacts, either positive or negative
- any expected regional impacts of the project
Describe any expected social impacts, either positive or negative on, for example:
- quality of life
- social inclusion or exclusion
- jobs, such as safeguarding, creating, changing or displacing them
- education
- public empowerment
- health and safety
- regulations
- diversity
Question 11. Project management
How will you manage your project effectively?
Explain:
- the main work packages of your project, indicating the lead partner assigned to each and the total cost of each one
- your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome
- the management reporting lines
- your project plan in enough detail to identify any links or dependencies between work packages or milestones
You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.
Question 12. Risks
What are the main risks for this project?
Describe:
- the main risks and uncertainties of the project, including the technical, commercial, managerial and environmental risks
- how you will mitigate these risks
- any project inputs that are critical to completion, such as resources, expertise, and data sets
- any output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage this
You must submit a risk register as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.
Question 13. Added value
How will this public funding help you to accelerate or enhance your approach to developing your project towards commercialisation? What impact would this award have on the organisations involved?
Explain:
- what advantages public funding would offer your project, for example, appeal to investors, more partners, reduced risk or a faster route to market (this list is not exhaustive)
- the likely impact of the project outcomes on the organisations involved
- what other routes of investment you have already approached
- what your project would look like without public funding
- how this project would change the R&D activities of all the organisations involved
Question 14. Costs and value for money
How much will the project cost and how does it represent value for money for the team and the taxpayer?
In terms of your project goals, explain:
- your total project costs
- the grant you are requesting
- how each partner will finance their contributions to your project
- how this project represents value for money for you and the taxpayer
- how it compares to what you would spend your money on otherwise
- the balance of costs and grant across the project partners
- any subcontractor costs and why they are critical to your project
3. Finances
Each organisation in your project must complete their own project costs, organisation details and funding details in the application. Academic institutions must complete and upload a Je-S form.
For full details on what costs you can claim see our project costs guidance.
Background and further information
The Digital Dairy Chain project exists to boost the rural economies of Cumbria, South and West Scotland by focusing on the region’s unique strength, dairy production and manufacturing. By working collaboratively we are creating a world-class research, innovation, business and skills platform.
We want to develop a dairy supply chain which is fully traceable and digitalised and by doing so establish the region as a leader in advanced, sustainable and high value dairy manufacturing.
To find out more about the project contact us or visit the Digital Dairy Chain website.
Data sharing
This competition is jointly operated by Innovate UK, and Scotland’s Rural College (SRUC) on behalf of the Digital Dairy Chain for Cumbria, South and West Scotland (each an “agency”).
Any relevant information submitted and produced during the application process concerning your application can be shared by one agency with the other, for its individual storage, processing and use.
This means that any information given to or generated by Innovate UK in respect of your application may be passed on to SRUC and vice versa. This would include, but is not restricted to:
- the information stated on the application, including the personal details of all applicants
- scoring and feedback on the application
- information received during the management and administration of the grant, such as Monitoring Officer reports and Independent Accountant Reports
Innovate UK and SRUC are directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. Accordingly, Innovate UK, and SRUC will be data controllers for personal data submitted during the application. Innovate UK’s Privacy Policy is accessible here.
Innovate UK complies with the requirements of GDPR, and is committed to upholding the data protection principles, and protecting your information. The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.
Find a project partner
If you want help to find a project partner, contact Innovate UK KTN.
The Digital Dairy Chain project has a dedicated team of Innovation Brokers available to help with consortium building and development of proposals. They can be contacted through the Digital Dairy Chain website.
Support for SMEs from Innovate UK EDGE
If you receive an award, you will be contacted about working with an innovation and growth specialist at Innovate UK EDGE. This service forms part of our funded offer to you.
These specialists focus on growing innovative businesses and ensuring that projects contribute to their growth. Working one-to-one, they can help you to identify your best strategy and harness world-class resources to grow and achieve scale.
We encourage you to engage with Innovate UK EDGE, delivered by a knowledgeable and objective specialist near you.
Next steps
If you are successful with this application, you will be asked to set up your project.
You must follow the unique link embedded in your email notification. This takes you to your IFS Set Up portal, the tool that Innovate UK uses to gather necessary information before we can allow your project to begin.
You will need to provide:
- the name and contact details of your project manager and project finance lead
- a redacted copy of your bank details
- a collaboration agreement
- an exploitation plan
In order to process your claims, we need to make sure that the bank details you give to us relate to a UK high street bank that is regulated by the Prudential Regulation Authority (PRA). The account must have a BACS clearing facility and be in the same company name as your application.
If you have any doubts that your bank account will not meet Innovate UK's funding criteria, you can use the sort code checker. If you input the sort code and find a tick next to the ‘BACS Direct Credit payments can be sent to this sort code’, this will give you an indication that the bank account you hold is acceptable.
Finance checks
We will carry out checks to make sure you are an established company with access to the funds necessary to complete the project.
You must check your IFS portal regularly and respond to any requests we have sent for additional information to avoid any delays.
Failure to complete project setup may result in your grant offer being withdrawn.
Your Grant offer letter (GOL)
Once you have successfully completed project setup, we will issue your GOL.
The GOL will be made available on your IFS portal. You will need to sign and upload this before you start your project.
Your GOL will show the start date for your project, do not start your project before this date. Any costs incurred before your start date cannot be claimed as part of your grant.
If your application is unsuccessful
If you are unsuccessful with your application this time, you can view feedback from the assessors. This will be available to you on your IFS portal following notification.
Sometimes your application will have scored well, and you will receive positive comments from the assessors. You may be unsuccessful as your average score was not above the funding threshold or your project has not been selected under the portfolio approach if this is applied for this competition.
Contact us
If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.
Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).
Need help with this service? Contact us