Funding package to support food and drink industry
The food and drink sector is getting £5 million to help its recovery from Covid-19 and prepare for Brexit.
A new joint industry and government plan has been developed to assist in stimulating demand for produce in key markets and supporting businesses to capitalise on consumer demand.
The plan aims to mitigate and reverse the damage caused by both the pandemic and the lack of clarity regarding Brexit, and aid the industry’s progression to be greener and more resilient. It also builds on the work of the Scotland Food & Drink Partnership in delivering Ambition 2030, the shared vision for the future of Scotland’s food and drink sector. The industry is expected to contribute £3m of private sector funding to support delivery of the plan through to 2023.
The food and drink sector has been one of the areas hardest hit by Covid-19, with industry forecasts predicting up to £3 billion in revenue lost this year alone, and the lack of clarity regarding a Brexit deal will amplify those challenges.
Rural Economy Secretary Fergus Ewing said: “The food and drink industry is one of the true success stories of Scotland’s economy, with exports worth a record £6.7bn in 2019. Across the country, particularly in many of our rural areas, the sector creates highly paid, highly skilled jobs and contributes directly to the public purse in taxes.
“Food and drink businesses have shown remarkable resilience and innovation in responding to the pandemic, from finding new routes to market themselves or in the actions they have taken to support their workforce and keep food on our tables. However, in addition to the many challenges presented by Covid-19, we now need to prepare for the disruption and uncertainty the end of the Brexit transition period will bring in a few weeks’ time.”
Scotland Food & Drink CEO James Withers said: “2020 has been a year like no other. The trauma wreaked by Covid-19 has affected all of us and following that earthquake comes the next great disrupter: Brexit. But despite this volatile and uncertain world, Scotland’s food and drink sector remains resilient and full of talented and dedicated people that will help drive the recovery.
“The plan brings together industry and the Scottish Government in an agreed strategy of tangible action to stimulate demand in domestic and international markets.”