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Withers says export can be a ‘game-changer’ for Scotland

Posted 27 June, 2014
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James Withers, chief executive for Scotland Food and Drink, notes that Scotland is a small player on the world market, and will never be feeding China. “But we can just use a small corner of the Shanghai market, to reach £7.1 billion in exports by 2017.” For dairy, the idea was to rejig the vision of success in Scotland. Formerly, the market was tied to liquid milk and the idea of getting another pence or two for milk at the farmgate, Withers says, speaking at a recent Dairy UK seminar. “Added value lagged behind and we’d become far too complacent. There was no unified vision.”

The scene has changed, especially as foreign ownership of dairies has increased. “On the upside, they offer a global vision and innovative ideas that can be used in Scotland. On the downside, a dairy can become a blip on the radar, with strategy and decisions about the future taken elsewhere.”

In the past, Scotland has been synonymous with bad food, with the deep-fried Mars bar being a symbol of the poor quality of the local diet. However, with 75% of Scotland being under agricultural production, and longer coastlines, Scotland has a lot to offer, Withers says. Dairy is part of the umbrella organisation that covers everything from whiskey to salmon. Whiskey itself has been a success story, with £140 being pulled in every second in exports for that market. “The average Frenchman drinks more scotch whiskey in a month than French cognac in a year,” he points out.

Scotland Food & Drink was created in 2007 to work collectively for common gain. Scotland is one of the few countries that has a national food and drink policy, and more than 80 per cent of the funding comes from the industries served. The idea behind the organisation is not not sell the food cheaply, but rather make the most of its provenance. “There is a huge opportunity to forge a new market,” he states. It also supports small businesses, as 80% of the food and drink companies in Scotland employ less than 10 people.

The overall vision at the start was to incfrease exports to £12.5 billion by 2017. This target was reached in 2011, six year early, so the new target is £16.5 billion by 2017.

Withers says the idea is to stop discussing the decline of Scottish production, and instead look to areas of growth. “We can create demand beyond our shores. There is a branding opportunity there, like Irish foods and California almonds.” Internally, meanwhile, he notes that in consumer surveys, more than half polled want access to local food.

However, he warns that it may not be the easiest thing to do. “The competition is well-organised, and countries like Ireland and New Zealand have been there awhile,” he states. “However, I think we have a very good story, and export is our game-changer that may insulate us from a volatile world.”

 

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Dairy Industries International