FM welcomes £63.6m whisky exports

The figure comes just a year after China agreed to grant new legal protection to ensure any product labelled as 'Scotch Whisky' must come from Scotland.

The First Minister also announced good news for Scottish salmon producers who have netted almost 20 million pounds in exports of fresh Scottish salmon to China in just nine months since a Scottish Government-brokered agreement enabled direct exports to the country.

The figures come as the First Minister launched a new food and drink export strategy for Asia. Scotland’s international Food and Drink Strategy for Asia was developed by Scottish Development International (SDI) in consultation with key stakeholder organisations, including the Scottish Salmon Producers’ Organisation.

The strategy aims to help the Scottish food and drink industry exploit opportunities for additional growth in Asia over the next six years. As part of the wider government focus on trade and industry, it focuses on promoting Scotland as the Land of Food and Drink, building Scotland’s profile as a supplier of premium products to top end foodservice and retail customers in Asia

It focuses on key areas where Scotland already has a global competitive advantage such as whisky, seafood and red meat whilst looking to expand in other fields such as dairy, fruit and vegetables, bakery and premium grocery. Through market development and business support, it aims to help provide Scottish food and drink companies with the resources, knowledge and networks to develop significant sales in the Asia Pacific region.

The First Minister and SDI Chief Executive Anne MacColl are today attending an industry event in Hong Kong, accompanied by Scottish producers, to promote Scottish food and drink. They hosted a similar event in Beijing on Tuesday.

This is the first visit to China by the First Minister since the historic deal to directly export Scottish salmon was agreed between the Chinese and Scottish Government’s in January.

The First Minister said: “Growing and exporting firms make a significant contribution to Scotland's economy. That is why the Scottish Government is committed to investing in a supportive business environment, focusing our efforts on growth markets, with an ambitious target to deliver a 50 per cent increase in exports by 2017.

"The quality of food and drink that Scotland has to offer is world-renowned and our premium produce is increasingly cultivating an impressive reputation overseas. From succulent Scottish seafood to iconic Scotch whisky, our plentiful larder is second to none.

"It’s fantastic that Chinese consumers are already taking an interest in authentic Scottish produce. Exports of fresh Scottish salmon to China have already reached almost 20 million pounds since we brokered an agreement with the Chinese Government to allow direct exports to begin in January, while direct shipments of Scotch whisky to China and Hong Kong are up 13 per cent on the same period last year to reach 63.6 million pounds in September.

“However, I believe there is scope to build on this success through this new strategy for Asia to help boost exports to this key growth market. The food and drink sector is a vital part of Scotland's economy and growing export demand is crucial to this."

The value of direct fresh Scottish salmon exports to Far East markets, including China, Thailand, Malaysia, Singapore, Vietnam, Japan, Taiwan and Hong Kong, increased from 3.1 million pounds between January and September 2010 to more than 20 million pounds for the same period in 2011. From a standing start earlier this year, China has become the fifth largest export destination for fresh Scottish salmon.

Scotch whisky exports to Asia for the period January to September 2011 were worth 659.6 million pounds - up from 514.7 million pounds during same period last year.

Despite growth in whisky and fresh salmon exports to China, there is significant potential to grow Scottish food exports overall to Asia, with the region currently accounting for only four per cent of total global Scottish food exports.

Anne MacColl, SDI chief executive, said: “The Asian market offers huge potential for Scottish food and drink companies and it is a very good fit for Scotland’s strategic focus on premium products, health and provenance. With high rates of GDP growth in Asia, rising income levels, increased urbanisation and more sophisticated tastes, there is a very real opportunity for Scotland to build a profitable export business there over the next six years.

“This strategy will ensure that we fully exploit these opportunities. It’s essential that we work in partnership with government, stakeholders and individual companies to identify new opportunities, build new customer relationships and develop solutions to any barriers to trade with Asia that currently exist.

“We know that international trade and investment is key to Scotland’s long-term economic recovery and we are committed to ensuring that our message is clear: Scotland is very much open for business and is ready to compete on a global stage.”

Scott Landsburgh, Chief Executive, Scottish Salmon Producers' Organisation, said: “Opening the Chinese market has boosted the export value to the Far East by 500 per cent and increased the potential to supply a wider range of discerning consumers. The high quality of fresh Scottish salmon is perfect for the increasing popularity of sashimi and sushi.

“Salmon is a growth sector of our economy and export potential of this kind to fast growing markets maximises value, provides greater long-term resilience and helps to maintain and create high quality and sustainable jobs in Scotland.”

Gavin Hewitt, chief executive of the Scotch Whisky Association, said: "China, along with the rest of Asia, is becoming an increasingly important market for Scotch Whisky. We welcome China’s openness to international trade which has helped Scotch Whisky become the UK's top manufactured consumer goods export to the country. As a product, Scotch Whisky meets the aspirations of many discerning Chinese consumers.”

A range of support will be available over the next six years as part of the strategy to help companies target the Asian market, including workshops, Scotland Food and Drink Pavilions at key Asian trade shows, missions and learning journeys. For information on how SDI can help your company target new overseas markets, click here.

Contact

Annalena Winslow : 0131 244 2954 / 07917 052265