SDI reveals record exports for Scottish food and drink

Scottish Development International (SDI) has today (20 May) announced a record increase in Scottish food and drink exports, with international sales reaching an all-time high of £4.06 billion during 2009. This news comes as a huge boost for industry leadership group Scotland Food and Drink, which recently unveiled a new strategy for the food and drink industry, setting out plans to grow Scottish food and drink exports to £5.1 billion by 2017.

The figures, which have been extracted from official HMRC export statistics for 2009, show that international sales of Scottish food products soared by 20% to £934 million, while combined total international sales for Scottish food and drink increased by 6% to £4.06 billion.

Seafood exports led the way, with international sales in this sector increasing by 20% to £555 million. This result has been assisted by the burgeoning overseas demand for Scottish salmon, which enjoyed total export sales valued at £285 million (fresh, frozen and smoked), thanks to an increasing global appreciation for the product’s PGI status and its premium taste, quality and character.

Other notable figures are as follows: 

• The top three markets for Scottish food and drink were the USA, France and Spain, with total sales to the USA up by 6%.  
• In the drinks category, Scotch whisky exports grew by 3% in value to £3.13 billion. Continuing success was enjoyed in France (+13% in value) and the United States (+13%), with Brazil (+44%) and South Africa (+7%) both representing significant emerging markets in 2009.
• For Scottish food products, Europe was the main destination with France, Ireland and Spain listed as the top three export markets. Total export sales to France alone grew by a massive 24% in 2009.  
• Other exports markets which experienced a significant uplift in food sales include the Netherlands (up 41% to £41 million) and Germany (up by 43% to £56 million) supported by strong dairy exports and Russia, up by 24% to £54million, supported by strong seafood sales.

The strong international demand for Scottish food and drink is partly thanks to a drive on provenance by Scottish manufacturers, which believe the rising demand for genuine, original Scottish produce presents a huge opportunity for the food and drink industry.

SDI is working with partner organisations such as Scotland Food & Drink, to help companies access new international markets and equip them with the skills and expertise needed to compete at a global level.

Commenting, David Smith, interim chief executive of Scottish Development International, said: “The combination of sustained growth in existing markets and strong interest in Scottish produce from emerging markets means that our food and drink exports have continued to soar.

“This strong performance is testimony to the innovative and entrepreneurial spirit of Scottish manufacturers plus the quality of what they produce. If we can achieve such impressive growth with only 29% of Scottish businesses currently involved in international activity, I am very excited by the potential of what could be achieved if we can engage more companies in export activity"

“We work hard to support Scottish food and drink companies through initiatives like our international preparedness programme, plus the various exhibitions, missions and learning journeys we undertake every year. As such, our message to companies is to be bold, broaden your horizons and really start to think about new markets.

“If the opportunity is there, we will support these companies in taking their first steps to achieve their global ambitions.”

Paul McLaughlin, chief executive of Scotland Food & Drink, added: "It's encouraging to hear that Scottish food and drink exports have continued to grow during the last year, particularly given the tough economic climate in which Scottish manufacturers were operating. This achievement is testimony to the ambition, determination and tenacity of our industry, coupled with the quality and the depth of support provided by SDI.

"We have set ambitious growth targets for Scottish food and drink exports, and are fully committed to working with our partners to achieve this."

Richard Lochhead, rural affairs secretary, said: “It’s clear that these impressive figures provide further evidence that Scotland is driving forward a food and drink revolution.

“Despite the tough economic climate, total international sales of our iconic food and drink increased by 6 per cent to over £4 billion last year. Food exports alone increased by a fifth.

“The industry deserves tremendous credit for making considerable progress towards reaching ambitious growth targets and laying the foundations for even more success. We will shortly unveil detailed plans for a year-long celebration of Scotland’s produce, to enhance our reputation as a land of food and drink.”

In support of Scotland Food & Drink, SDI is working to ensure that companies have access to the international expertise, networks and events needed to enable them to exploit international opportunities. SDI has allocated extra resources to support the Scottish food and drink industry with approximately £2 million being invested annually in international trade activities and promotions.

In February, SDI led a delegation of Scottish companies to Gulfood – one of the world’s biggest food and drink trade shows held annually in Dubai. Scottish companies attending the event generated £260,000 in actual sales and an additional £1.7 million in projected sales, as a result of attending the trade show.