Enhance our competitiveness
As the largest manufacturing industry in Scotland we play a vital
role in underpinning the economy. Our industry has enormous
potential, driven by a culture of innovation across a range of
technologies.
The sector can play a key role in rebalancing our economy as the UK has a
negative balance of trade. Therefore exporting industries, like food and drink,
are vital to the recovery of our economy. However we compete on a global basis.
"For our industry to continue to deliver for Scotland
we must remain competitive. This will be one of the biggest challenges that our
industry faces."
Food and drink manufacturing sales
Sources: Scottish Government
Prioritise economic and business growth.
A top priority for Parliamentarians and Government
should be economic and business growth.
"Our ambitions for future growth must support areas
where we have a comparative advantage such
as added-value food and drink manufacturing,
recognising that success in our brands and products
positively reflects on Scotland as a whole."
Our industry has shown the leadership to grow and develop.
Many of our members have grown significantly and continue
to invest in new products, processes and technologies.
"In return we expect Government to provide a
framework for business growth, further assisting
industry to build on current successes. Action on
issues such as skills, productivity, support for
business and innovation can make a real difference
to our industry."
Retain priority status.
Priority status for the food and drink
industry has allowed us to make step changes in how it
interacts, receives support from and delivers for Government.
This must continue for this success to be built upon.
Manufacturing adds value to our economy and acts as a
lynch pin within the food chain as a whole and that must
be recognised in future support and strategy.
Vital support from Government must continue.
The industry believes that the progress made in developing a
national food and drink policy and establishing a Food and
Drink Industry Division within Government has been vital in
ensuring a joined up approach. To have a long term impact,
this must only be the first step.
Targeted support for developing companies to export.
"There are many great Scottish export stories.
There are also many Scottish brands that have the
export potential but find it time consuming and
difficult to break into international markets due to
legal, linguistic and cultural issues."
Support must be targeted depending on the company –
for some it maybe funding trade missions, using existing
networks overseas or providing specific in-country
information.
Make dealings between retailers and manufacturers fairer.
The Grocery Supply Code of Practice aims to ensure that
manufacturers get a fair price for their products and that
there is an accepted way of doing business. We welcome
the proposal to establish a Grocery Code Adjudicator to
monitor and enforce the Code.
Whilst this would be UK
wide, there is the opportunity for MSP's to make
representations to ensure the Adjudicator pays necessary
attention to companies of all sizes and in different parts of
the UK. SFDF is calling for the Grocery Code Adjudicator to
be represented in Scotland as the OFT is and via a model
similar to that of OFCOM.
Recognition that high costs affect our competitiveness.
"We compete in a global economy.
Every cost affects our industry."
Whether these are costs that the UK or Scottish Government
controls like business rates, fuel duty, or tax. The industry is
also negatively affected by the increasing cost and volatility
in the price of commodities, as shown below in the graph
which illustrates the rising price of commodities like meat,
dairy and sugar. These costs combined erode margins and
affects our competitiveness.
Rising cost of commodities
Source: Food and Agriculture Organisation of the United Nations Food Price
Index
Introduce a fuel stabiliser.
There should also be no further increases in fuel duty
and as an industry we support the principle behind a fuel
stabiliser so that as the price of oil increases, duty
decreases. Manufacturers are currently being negatively
affected twice over – by rising oil prices and by rising fuel
duty. Increasing fuel duty also disproportionately impacts
on manufacturers in rural areas of Scotland, who are
further away from their main markets.
More information
Download PDF: Manifesto: Supporting our Industry. Supporting growth. Supporting Scotland.