Scotland's Food & Drink Industry Continues to Boost Economy

Investment in innovation will be at the heart of future growth within Scotland ’s food and drink manufacturing industry.

New figures show it remains the largest manufacturing industry in Scotland and it continues to grow its turnover.

This is the message that will be heard tonight in the Scottish Parliament at an event hosted by the Scottish Food and Drink Federation (SFDF), the trade association which represents food and drink manufacturers in Scotland.

At a time of economic uncertainty, the food and drink industry in Scotland continues to make a significant contribution to the national economy.

New figures released for 2009 show that the turnover for the food and drink key sector as a whole has increased by 6 per cent on the previous year to reach £11.9 billion. Food and drink manufacturing alone accounts for £9 billion of this total.

Food and drink key sector GVA has increased by 9 per cent over the same period and now stands at £4.8 billion. Meanwhile, food and drink manufacturing has contributed £3.9 billion of this total.

The food and drink manufacturing industry remains the largest manufacturing industry in Scotland – accounting for one-third of overall manufacturing GVA. This highlights the continued importance of the industry to Scotland and the UK (data is sourced from the Office for National Statistics, Scottish Annual Business Statistics 2009, released 31 August 2011).

Companies from across Scotland will showcase their contribution to innovation and best practice in areas such as sustainability, with Cabinet Secretary for Rural Affairs and the Environment, Richard Lochhead MSP, due to address these issues in his keynote speech.

Mr Lochhead said: "Scotland has one of the greatest food and drink larders in the world, so it is only fitting that we celebrate our success during Scottish Food & Drink Fortnight.

"Between 2008 and 2009, turnover in the food and drink key sector increased by 6 per cent from £11.2 billion to £11.9 billion - an increase of over £700 million.

"The Scottish Government is providing support to help the industry grow to £12.5 billion by 2017, and innovation is key to this growth.

"We have already funded £30 million in awards through our Food Processing , Marketing and Co-operation Scheme, creating and safeguarding thousands of jobs.

"Furthermore, we are supporting food and drink innovation in Scotland through strategic research and funding for science projects.

"By developing healthier and more environmentally friendly food we can not only improve our diet and our surroundings, but also take advantage of the new global markets emerging in the food and drink industry."

Yvonne Adam, marketing director of SFDF member, Baxters Food Group, said: "As the country’s largest manufacturing industry, our role in the economy is vital.

"As an industry, we are not afraid to take risks, whether this be new product development, exporting overseas or investment in improving our efficiency and profitability."

Flora McLean, director of the Scottish Food and Drink Federation, said: "The food and drink manufacturing industry acts as a lynchpin – adding value to other parts of the food chain.

"It supports other key primary industries in Scotland, is a major employer and continues to grow despite tough trading conditions."

Companies showcasing at tonight’s event will include Baxters Food Group, Macsween, Quaker Oats, Matthew Algie, Rannoch Smokery, Macphie, Macrae, Scobie and Junor, Nairn’s and Orkney Herring.

The Scottish food and drink manufacturing industry is Scotland 's largest manufacturing sector. It generates annual sales in excess of £9 billion.

Scottish Government.