Food and drink sector 'could create 14,000 jobs'

Food and drink companies could create 14,000 jobs over the next five years, according to a Bank of Scotland report.

The study said several firms had ambitious plans to create new products, target fresh markets and create more jobs.

However, many of the companies warned they were hampered by increasing regulation and rising labour costs.

The conclusions were made in the annual Bank of Scotland Fresh Opportunity and Growth report.

Scotland's food and drink industry is already an important part of the Scottish economy and there are ambitious plans to grow it from its current value of £14bn to £16.5bn by 2017.

This report suggests good progress is being made.

Over the next five years, two thirds of businesses expect to develop new products and expand their international operations.

More than three-quarters said they had benefited from the reputation Scotland's food and drink enjoyed overseas.

Two-thirds of respondents were planning to create new roles in the next five years, which, if replicated across the entire industry in Scotland, could mean the creation of more than 14,000 positions.

Graham Blair, an area director of the Bank of Scotland's commercial banking sector, said: "Scottish food and drink manufacturers of all sizes are making ambitious plans for significant growth, cementing the sector as one of Scotland's key economic contributors.

"Scotland's food and drink sector has a significant impact on Scotland's Gross Value Added and this year's report gives every indication that this input will become even stronger."

James Withers, chief executive at industry body Scotland Food & Drink, added: "One element of Scotland's reputation for world-class produce is our heritage and tradition, but that can still marry well with smart product innovation, tapping into fast-changing consumer and market trends.

"One of the most important catalysts for Scotland's remarkable food and drink growth in recent years has been the development of a new culture of collaboration. Different sectors, from seafood to red meat to whisky, now work together to build our national reputation.

"Competition is healthy but collaboration opens up new markets and relationships."

Cabinet Secretary for Rural Affairs, Food and the Environment Richard Lochhead said that the "story of growth, development, and success" in the Scottish food and drink sector since 2008 was "remarkable".

He added: "With unprecedented industry turnover growth; huge export growth of over 50%, new markets opened up across the world; and greatly improved collaboration between all parts of the industry.

"For the industry to continue to grow and flourish it is vital there is a strong investment in skills, innovation and research.

"It is heartening therefore to see the confidence that our food and drink companies are displaying in predicting the need for many new jobs over the coming years that can help us capitalise on our fantastic larder and natural resources and enhance Scotland's reputation as a land of food and drink."