Food exports to drive 10,000 new Scottish jobs

02-Sep-2014 - Last updated on 03-Sep-2014 at 10:51 GMT

Scottish food and drink firms could generate 10,000 extra jobs over the next five years

Related tags Drink industry Scotland

Up to 10,000 new food and drink industry jobs could be created over the next five years thanks to Scotland’s rapidly rising exports, predicts a report from Bank of Scotland.

Two-thirds of the 100 Scottish food and drink businesses surveyed by the bank planned to boost their workforce, creating an additional 2,000 jobs by 2019. If repeated across the industry, about 10,000 new roles would be created, calculated the bank.

A key driver of the jobs boom was predicted to be the growth of food and drink exports. More than half (58%) of the firms surveyed expected to win new export customers during the next five years.

Underlining the key importance of EU markets, 86% of firms planned to invest in winning new customers in western Europe, while 67% were targeting new business in the Far East and Asia.

The survey was conducted by independent research company, Coleman Parkes, in July 2014.

‘Vastly outperformed the wider economy’

Graham Blair, Bank of Scotland area director, said the report revealed the growing significance of Scotland’s food and drink sector to the national economy. “The sector has vastly outperformed the wider economy in recent years, growing strongly during the downturn. But, as global economic conditions continue to improve, its growth is likely accelerate even further in the next five years,” said Blair.

“Our report also shows that Scotland’s reputation for providing iconic and high-quality food and drink products is increasing the global appetite for our produce, not just in Europe but in South East Asia and South America.”

James Withers, chief executive of Scotland Food & Drink, said: “We are witnessing record growth levels in the Scottish food and drink industry, with the nation cementing its reputation at home and abroad as a land of food and drink. We have moved from a position of static growth in 2007 to a 40% rise in the value of the sector since then.

“While recent years have taken the industry, now worth £14bn, to a whole new level, there is still so much potential ahead of us. The industry and government are working in close partnership on a clear strategy and we have set a new growth target of £16.5bn in turnover by 2017.”

The Scottish government was on track to meet the aim of its 10-year plan to double food and drink exports from Scotland, he added.

‘Great success story’

Dr Colette Backwell, director of the Food and Drink Federation in Scotland, welcomed the report. “We look forward to studying the Bank of Scotland report in detail but we agree with its headline conclusion that the food and drink industry in Scotland continues to be a great success story and has further growth potential,” said Blackwell.

“Scottish businesses interested in seeking out new export markets will be able to access lots of expert advice during our Food & Drink Focus Weeks from September 8 on Open to Export portal, including free webinars, downloadable guides and latest export statistics and case studies.”

The Bank of Scotland survey also identified two barriers to growth. Nearly half of firms surveyed reported that lack of time and resources were the biggest blocks to expanding into international markets.

More than 80% complained volatility in the cost of raw materials was a key problem, while 67% said sustainability was a concern.

Last month, new figures revealed Scotland’s food and drink industry had grown by nearly 5% in 2013 to reach a turnover of nearly £14bn. Cabinet secretary for rural affairs, food and the environment Richard Lochhead said the success heralded even greater growth, after a Yes vote in Scottish independence referendum on September 18.

“Not only do these figures demonstrate the quality of our produce, they are taste of further success to come as the powers of independence can further boost turnover,” said Lochhead. “Independence will help our food and drink industry grow even more,” he added.

Meanwhile, pro independence campaigners received a big boost this week in the shape of a YouGov survey commissioned by the Sun newspaper. With fewer than three weeks to go before the vote on September 18, the survey put the pro-union lead at just 6%, excluding undecided voters, head of the independence campaigners. That lead had shrunk from 22 points less than a month ago and 14 points in mid-August.

For the latest jobs in food and drink manufacturing, visit FoodManJobs.