A project established to help rejuvenate the region's rural economy shattered by the Foot-and-Mouth epidemic has been hailed a success.

Newcastle University's New Rural Economy Project (NREC) was set up in the wake of the 2001 FMD crisis, to provide the region with skilled employees for rural enterprise.

More than 80 per cent of students who have completed the course have since found jobs in North-East, countryside-related businesses and organisations.

An independent study by European Economic Development Services Limited has congratulated NREC for its contribution to regional graduate retention and for helping to improve the health of the countryside economy in County Durham and Northumberland.

It states that the university's Centre for Rural Economy, which runs NREC, is "at the heart of rural economic regeneration in the region and beyond".

Funding was provided by the regional development agency, One NorthEast, the Northern Rock Foundation, and Northumberland and Durham County Councils.

Margaret Fay, ONE chairman, said: "This is an excellent example of how universities can provide practical assistance to our region's businesses.

"By giving young people hands on projects to work on in rural firms, the scheme has not only helped these businesses to tackle a real issue, but has also given students valuable experience that reinforces their learning."

The project was also part of the university's response to ONE's Regional Economic Strategy, which aims to place universities at the heart of economic regeneration.

Twelve of the 14 students who completed the training programme have found jobs in the North-East, including posts at the regional offices of the Countryside Agency and Environment Agency, the Environmental Industries Federation, Heritage Lottery Fund and Durham and Northumberland County Councils.