Scotland’s Food Manufacturers Urge Action for Future Sustainability Amidst Economic Growth

New data reveals a robust 20% growth in the economic value of Scotland’s food and drink manufacturing sector over the past year, now contributing £5.7 billion to the Scottish economy. As Scotland’s largest manufacturing sector, it employs approximately 43,000 individuals across the nation.

These impressive figures come from a recent report by the Food and Drink Federation, highlighting the prominence of the food and drink manufacturing industry in the Scottish economy. The sector now accounts for nearly a third (32.4%) of the region’s total manufacturing turnover, and Scotland contributes 10.4% of the UK’s overall food and drink manufacturing turnover.

Impact Across Communities

The influence of food and drink businesses, both large and small, is felt throughout communities in Scotland. Notable examples include the Paisley Pie Co., a finalist in the MP’s Choice: Food and Drink SME of the Year awards, which has gained fame with its viral ‘Big Daddy Donner’. Additionally, the iconic brand Nairn’s, known for its oatcakes since 130 years ago, employs 240 individuals in Scotland.

The sector is crucial in providing over 43,000 long-term jobs, ranging from food microbiologists to sustainability experts, encompassing approximately 26% of total manufacturing employment in the country.

Challenges to Growth

Despite these positive strides, rising costs in recent years pose significant challenges to the sector’s ability to invest in technology, innovation, and growth. A recent analysis indicates that UK-wide, food manufacturers experienced an average production cost increase of 4.4%, with small businesses facing even higher rises of 5.3%.

As Scotland approaches its upcoming elections, industry leaders are calling on parliamentary representatives to prioritize the resilience and growth of this crucial sector. Their demands include:

• Minimizing policy divergence across the UK to foster a stable regulatory environment.
• Providing ring-fenced grants for businesses to support innovation and productivity.
• Reforming the skills delivery model to meet future industry requirements.

Voices from Industry Leaders

David Thomson, Chief Executive Officer of FDF Scotland, emphasizes the sector’s significance:

“Our dynamic, innovative and resilient food and drink manufacturing industry is truly a strength of Scotland. Food and drink businesses are at the heart of communities across the country, providing long-term careers, investing in local initiatives and putting Scottish heritage and culture on the map globally.”

“These businesses are ambitious, but years of rising costs and regulatory pressure, along with the impacts of climate change and geopolitical volatility we’re seeing now, are putting those ambitions for growth at risk. It’s vital that we see Scottish parliamentarians commit to safeguarding the future of Scottish food and drink manufacturing by helping businesses invest in technology, skills and net zero.”

Commitment to Environmental Sustainability

A key focus for Scottish food and drink manufacturers is environmental sustainability. FDF Scotland urges the government to engage with the industry to identify and overcome barriers to achieving net zero emissions. Tracking a headline figure for carbon emissions within the sector would enable both the industry and the Scottish government to assess the impact of initiatives aimed at reducing emissions.