FRESH THINKING. Scotland Food & Drink 18 Logie Mill Logie Green Road Edinburgh EH7 4HS

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1 FRESH THINKING Scotland Food & Drink 18 Logie Mill Logie Green Road Edinburgh EH7 4HS Telephone Web March 2010

2 Introduction INTRODUCTION Scotland Food & Drink was created as an inclusive leadership organisation to help the food and drink industry grow, become more successful and critically, achieve our challenging vision of making Scotland Internationally known as A Land of Food & Drink. During 2009 with our partners we have refreshed the industry strategy first launched in Together we have defined the road map that we now need to follow to achieve even greater value and commercial ambition for the whole of our industry. Our work so far has demonstrated effective working partnerships with every sector contributing to the process and we now have a truly collaborative strategy for growth aimed at driving greater domestic and global success. We have established challenging targets but have also identified where the opportunities lie in the categories of premium, provenance and health. There is a 2.5bn growth opportunity and the real challenge now for all of us is the ability to turn these opportunities into actions. We need to grow the value of the industry through greater exporting, being more innovative and looking for ways to achieve a more effective cost base. I would like to take this opportunity to thank all of those who have contributed to the process, particularly the members of the Scotland Food & Drink Executive Group, the businesses who have provided invaluable feedback and to Scottish Enterprise who have undertaken much of the market analysis. The input received from all of you has helped create a strategy that clearly articulates the opportunities for our industry. I would also like to thank you in advance for the commitment you are making to delivering the actions that we need to help achieve the industry s ambitions and ensure that Scotland is a world player in food and drink. Allan Burns, CBE Chairman, Scotland Food & Drink

3 01 Our chance to be a world leader 02 How we ll look in 2017 We believe Scotland can be a world leader and we now have a clear idea of what this means and how we ll get there. Here is a snapshot of the industry we want to see by 2017: We ll be confident, an industry that looks forward and outward. We ll be growing and sustainable, and thinking hard about where we ll be in People everywhere will be more aware of what we have to offer. More of our products will enjoy the strong reputation that Scotch whisky and shortbread enjoy now. OUR CHANCE TO BE A WORLD LEADER With everything that Scotland has to offer a wonderful natural larder, incredible associations with landscape and clean environment, fantastic producers and products we can rightly claim to be one of the world s great lands of food and drink. But it s not the way the whole world sees us. Not yet, anyway. We need to build that global reputation. Of course, we have Scotch whisky, Scottish salmon, Scotch beef and other iconic Scottish products. But we don t have, say, the gastronomic cachet of Italy nor the all-round reputation for quality of New Zealand. There s no doubt that we could, but until recently there was an important unanswered question: were we really an industry or just a collection of individual companies going their own way? to find a common direction, to encourage people to share ideas, talents and resources so that the whole industry could grow and everyone would benefit, right the way along the supply chain. Today we re working better together, but we still have some way to go and our ambitions are grand, make no mistake. By 2017 we want Scotland to have fulfilled its potential as a land of food and drink, with a globally competitive industry worth 12.5bn. We know it s possible and what you ll read in the pages to follow is about how we plan to get there. But we also know we ll only succeed if everyone is involved. This is about the future of your business, however large or small. That s why we need you to read on and start thinking about the part you can play. We ll have a greater number of bigger players and a widespread culture of growing, collaborating, sharing information and ideas, and making best use of market intelligence. We ll continue to celebrate the variety and quality of our smaller, artisan producers. Food and drink will be seen as an aspirational, intellectually stimulating career choice. We ll be investing heavily in skills at all levels, from factory floor to boardroom. Everyone will know exactly what sustainability means for them, and for the industry as a whole, and will be doing what they have to do about it. International food and drink businesses will be queuing up to come to, and invest in, Scotland. Everyone who supports the industry the Scottish Government, the Economic Development Agencies and industry organisations along the supply chain will be working together and playing their role in driving the industry forward. A number of us started working together to tackle the challenge implicit in this question. We have many truly great food and drink businesses in Scotland. What we needed was

4 03 Where we are now? Ahead of the game The food and drink industry in Scotland today is in good shape. We re recognised as a major plank in the Scottish economy, generating nearly 10bn (1) a year. The lion s share, 7.5bn (2a), comes from our 1,200 processing companies (2b) and their supply chains. Agriculture, aquaculture and fishcatching add 2.5bn (3a & 3b). Primary producers are the backbone of our industry. Scotland is the world s second largest salmon producer (4) and we land 70% of the UK s fish (5). We have more than one quarter of the UK s beef herd (6), grow 40% of the nation s soft fruit crop (7), and are renowned as producers of seed potatoes. Scotch whisky, Scotch beef, Scottish salmon, cheese and oat products are globally recognised brands. Whisky alone accounts for nearly one quarter of all UK food and drink exports (8). Many Scottish brands are household names within the UK and a large number of prominent International brands also operate within Scotland. Our diversity is our strength, as well as bigger players, there are also many smaller firms with long histories, hidden assets and the potential to grow. We re good at research into all aspects of primary production, as well as brewing and distilling, nutrition and health. Scotland has world-class research establishments in many related fields such as life sciences with which we have strong links. We re also making our mark in food tourism. Most importantly, we re growing. We do better than food and drink UK-wide, as well as Scottish manufacturing and the Scottish economy as a whole* (9). Behind the game But we have weaknesses too. With three-quarters of our businesses employing 10 or less employees (10), and only 34 food and drink companies in Scotland turning over more than 50m (11), it s more difficult for us to create the kind of scale we need to become a true global player. The drinks sector apart, our industry is dominated by primary processing, though value-added processing is where the real growth potential lies. And while our primary producers are a vital part of the industry, the climate isn t easy for them. The regulatory environment is very challenging, poor returns for farmers mean less beef and dairy for processors, and the fishing industry faces serious issues around stocks and quotas. The supermarkets, of course, are essential to our success. They ve been very supportive of local and heritage-themed products and they ll continue to play an important part in the way we develop our products. But we re not reaching our potential in respect of exports, other sectors of the UK retail market, or even supermarket business South of the border. We re not as productive as we should be in either the primary or food processing sectors. Nor are we investing nearly enough in our future. We spend less on innovation than the Scottish average, with investment in R&D at just 1% of the Scottish total (12). Our investment in training is not very much better. One of our biggest challenges is to get everybody involved. We want smaller companies to see themselves as essential, integral parts of a larger industry with vision and ambition all of which may sometimes seem remote from the day-to-day reality of their businesses. * As measured in Gross Value Added the difference between the value of all the products and services produced by the industry and the cost of the raw materials and other inputs used in production. It s a more meaningful measurement than simple industry turnover. Footnote References can be found in Section 11. WHERE ARE WE NOW? Many Scottish brands are household names within the UK and a large number of prominent International brands also operate within Scotland. Our diversity is our strength, as well as bigger players, there are also many smaller firms with long histories, hidden assets and the potential to grow. 2.5bn from Scottish agriculture, aquaculture & fish-catching 7.5bn from 1200 Scottish processing companies 70% of the UK s fish is landed in Scotland 1/4 of the UK s beef herd is in Scotland

5 04 Where we re going Over the last year we ve put the industry under the Premium Provenance microscope and dissected it in new ways that bring our Our premium products include whisky, beer, beef, lamb, There s a lot to learn from the whisky industry about markets into sharper focus and make it easier to see where smoked meats and game, seafood, salmon, soft fruit, exploiting our Scottish credentials. Food businesses we should be concentrating our efforts. preserves, artisan cheeses, ice cream, confectionery, should be looking closely at its successes. We should bakery products and bottled water. also be making the most of the stories of individual It s been a major undertaking. We ve looked at consumer trends and we ve consulted people throughout the industry, large and small. The data is very good and we re confident that our new plans reflect what consumers want, rather than what we want to give them. All the feedback we ve had tells us we re on the right track, and our plans sit well with the Scottish Government s food and drink policy, which has its own role to play in helping us drive forward. These represent not only a higher price tag, but also a wide range of processes that add value. There s always room for more products, and more imaginative ways of adding value to them. We also need to invest much more in marketing and branding Scottish premium products. In both cases we need to start thinking more collaboratively. products to further underline their Scottishness. Most of our premium products can legitimately trumpet their provenance. That s to say whisky, beer, beef, lamb, smoked meats and game, seafood, salmon, soft fruit and vegetables, preserves, milk, cheese, ice cream, confectionery, bakery products and bottled water. Scotland s Healthy Basket includes: Naturally healthy: Easily understood natural health benefits. We ve identified three obvious strengths to which we can play in the global market. These are: strong Internationally competitive premium brands; a reputation for naturally healthy foods; and We estimate that growth in sales of premium products could be worth an additional 1bn for Scotland by Health Many Scottish products are associated with naturally healthy eating. For example fish, salmon and seafood, soft fruit, fruit But more of our products should be looking to carry the PGI/PDO* symbols that signify and protect distinctive traditional local foods. We should also be making sure they feature on the fast-growing and lucrative food tourism itinerary. Fish, salmon and seafood, soft fruit, fruit juice, bottled water, vegetables, high fibre cereals, oat-based products, chicken, lean red meat, bread. Functional ingredients: Foods containing ingredients with proven health benefits enables market segmentation and strong product differentiation. provenance (our Scottish credentials) which people immediately associate juices, bottled water, vegetables, high fibre cereals, oat based products, chicken, lean red meat and bread. We estimate that growth in sales of provenance products could be worth Examples include enriched margarines, fortified bread, energy drinks, probiotic yoghurt. with quality, authenticity and trustworthiness. We also have plenty of successful products that are better for you because of reduced fat, salt or sugar. These include an additional 600m for Scotland by Scotland is not yet on the radar in this category (beyond R&D). Better for You: some dairy and bakery products, ready meals, soft drinks, soups and other chilled processed foods. * Protected Geographical Indication and Protected Designation of Origin Generally processed foods with reduced fat, salt or sugar content. Again, there s room for more, and we need to work more with our scientist colleagues to develop new lines, Reduced fat dairy and bakery products, low salt ready meals, soups and chilled processed foods, reduced sugar soft drinks. especially in the market for products like probiotics that Scotland s Premium Basket includes: have active ingredients with proven health benefits. We reckon that growth in sales in the health market could be worth an additional 685m for Scotland by Scotland s Provenance Basket includes: Scotch whisky, premium beers, Scotch beef, smoked meats and game, seafood, salmon, soft fruit, preserves, artisan cheeses, ice cream, bakery products (specialist and fine foods), confectionery, premium bottled water. Scotch whisky, Scottish beers, Scotch beef and lamb, smoked meats and game, Scottish salmon, Abroath Smokies, fruit and veg, preserves, milk, cheeses, ice cream, bakery products, shortbread and oatcakes, oat based products, confectionery, bottled water, organic.

6 05 How we get there Scotland s future global reputation as a land of food and Collaboration processing suggests we re missing opportunities to work It will involve massive change, though the benefits are plain. drink will depend on our success in addressing several In a world-class supply chain, producers and processors closely with the primary sector and build more value into the Strong environmental credentials will help us win customers important issues. work together to deliver what the market wants, building supply chain, all the way from farm to fork, catch to kitchen. in all three of our main product areas. By meeting our own relationships of trust and creating value for everyone along and government green targets, we ll safeguard the future Skills the way. In a world-class industry, everyone is constantly We also need to build relationships with other industries such of our raw materials. These in turn will feed through into We need people with the skills that will make them more learning from everyone else, across the sectors, and as tourism, life sciences, energy and enabling technologies the economic sustainability of our businesses. productive in other words, who generate more output from collaborating so as to become more competitive. so that we can respond to new opportunities and gear their work. We need more entrepreneurs and people who can ourselves up in areas such as provenance, health products lead, along with others who are expert in marketing, design Although we have some good examples of collaboration, and sustainability. and branding. We need people who understand International markets, who know how to stimulate innovation and how to collaborate with others. And we need people who are familiar with all the ramifications of sustainability. All this calls for a far bigger investment in training than we re currently making. Without the skills this will bring, we have little chance of competing Internationally in the future. We also need to start attracting bright young people into the industry, which means making jobs in the food and drink industry a more attractive career option. Innovation We re lucky that some of the world s finest minds in agricultural research, food science and the life sciences are working in Scotland. It s up to us as an industry to influence their research agendas so that we can turn their science into commercial opportunities for our farmers, fishermen and processors. At present we invest far too little in R&D*, and we need to listen more closely to consumers in the early stages of product development. This way we ll create the products people want, with everyone in the supply chain working to the same goals. Some of the best opportunities for innovation are in the health and premium markets. We need much better links with the science and technology establishments, and a more serious commitment to investment so that we re at least matching our UK counterparts. *0.2% of GVA as opposed to 1.6% for the UK food and drink industry (13). we need to look hard at this aspect of our business. Scottish supply chains can be weak, and a predominance of primary CASE STUDY Jam today Meet-the-buyer events organized by Scottish Development International have helped Arbroath-based Mackays win important new business for their premium Scottish jams and marmalades in three key overseas markets. Following an approach by a Russian distributor at a trade show, Mackays contacted the SDI office in Moscow and later decided to test one of their products in the Globus Gourmet chain of stores. At a subsequent SDI meet-the-buyer event in Aberdeen they agreed a deal with a nationwide distributor and have already shipped nearly 100,000 jars to Russia. In the USA, another SDI meet-the-buyer event provided the final link in the distribution chain that enabled Mackays to place six of their specialty preserves with major retailer Kroger. In the Middle East, meanwhile, Walker s Shortbread helped them find an agent who recommended which distributors they should meet at the Gulf Food Show. With support from SDI, Mackays now have distribution in UAE, Saudi Arabia, Kuwait, Bahrain, Jordan and Oman. Scale Small businesses account for three-quarters of our industry. They bring the strength that comes from diversity, and the ability to respond swiftly to market trends that comes from being small. But they very often lack the resources to invest in the R&D, marketing and distribution that would allow them to grow larger and faster. We want the industry to remain diverse, but we need more businesses that are big enough in scale to compete seriously in global markets. Again, we need entrepreneurs with vision and drive who can create more global businesses. We also need smaller businesses that are open to the benefits of collaborating in the supply chain, in product development, or in shared marketing and distribution ventures. Sustainability The word means two things for Scotland s food and drink industry: that we continue to make a healthy and growing contribution to the Scottish economy; and that by continuing to behave responsibly towards the environment we benefit our reputation and growth. Although our industry is an important plank in the Scottish economy, and in some respects our green credentials are good we have excellent natural resources, our farms and fisheries are low polluters we still have a very long way to go to meet the ambitious 80% carbon reduction targets set by the Scottish Government (14). Our only chance of meeting this challenge is if we co-ordinate our approach to sustainability across the whole industry. CAPABILITY STRATEGY VISION MISSION GROW THE INDUSTRY TO 12.5BN BY 2017 & GVA TO 6.1BN REPUTATION AS A LAND OF FOOD & DRINK PREMIUM PROVENANCE HEALTH SUSTAINABILITY INNOVATION SKILLS FOR GROWTH COLLABORATION SCALE

7 06 At a glance So what does all this mean? These are the 10 tasks we most need to address if we re going to meet our 2017 goals of a 12.5bn industry with a global reputation: Create more brands, especially premium brands. Sell more of a wider range of food products overseas. Add more value to our primary products. Make more of our Scottish credentials. Encourage people to collaborate more, especially in the supply chain. Invest more in the skills we need. Promote our industry as a good place to work. Develop the new products consumers want and turn more of our research into commercial opportunities. Build more, bigger, globally successful businesses with collaboration as the keystone. Ensure that more businesses throughout the whole industry become economically and environmentally sustainable. CASE STUDY Scotland s oil Marketing high quality Scottish rapeseed oil as an alternative to olive oil has brought Summer Harvest rapid success. Within a year of launching the product, the Crieff-based family farming business has seen their Scottish Cold Pressed Rapeseed Oil winning two categories in Scotland Food & Drink s 2009 excellence awards. Following a chance conversation at the ceremony, they are also now collaborating with Caithness Smokehouse on a range of Scottish food delicacies. It s all about networking, says managing director Mark Bush, who believes that membership of Scotland Food & Drink has been an important factor in their success. We ve not only done well at the awards but gained more exposure for our product and collaborated with another food company. The rapeseed oil product won both the Soups, Preserves and Accompaniments and the Healthy Eating categories in the awards. With the oil already on sale in Baxters stores, farm shops and delis across Scotland, Summer Harvest are now in discussion with English outlets following an appearance under the Scotland Food & Drink flag at the London Specialty & Fine Food Fair. CASE STUDY Prime beef What began seven years ago with two Highland steers on 30 acres of grassland, is now a thriving premium Highland beef business for Nigel and Angela Taylor of Castle Douglas. Today Barlochan Highland Beef has 150 head of cattle on 580 acres and Nigel cites Scottish Enterprise s added value programme as a major factor in their success. Marketing, which previously took up a fraction of the couple s time, now accounts for nearly half of it. Although the basic product hasn t changed greatly, more choice for customers, and improved packaging and presentation, have added real value. A chance encounter during the programme led the Taylors to develop a sideline in beef pies as a way of using up their cheaper cuts, and now they also have a profitable range of cooked products. Thanks to the programme Barlochan Highland Beef took part in the 2008 showcase at the Royal Highland Show. It gave us unprecedented access to the press and industry buyers, says Nigel Taylor.

8 07 How we measure it 08 Others have done it These are the targets we ve set ourselves for 2017: Increase turnover for the whole industry from 10bn to 12.5bn. Increase GVA from 4.1bn to 6.1bn with processing GVA rising from 42% to 50% of turnover and primary production from 38% to 45% of turnover. Continue to outperform the UK food and drink manufacturing industry, Scottish manufacturing and the Scottish economy, as measured by GVA. Increase our R&D spend from 0.25% to 0.75% of GVA, with the processing sector ultimately meeting UK levels. Raise productivity to equal UK levels for food processing; and to continue outperforming UK levels for combined food and drink processing. Increase exports from 3.7bn to 5.1bn, with a strong emphasis on food exports. CASE STUDY Silver and green One of the biggest challenges facing processors these days is how to reduce energy consumption and waste. Pinneys of Scotland, suppliers of premium quality salmon and seafood products, have recently had their efforts in this area recognized with a silver award in the Business Initiatives Environment section of the Food and Drink Federation s Community Partnership Awards reflecting the key elements of the Food and Drink Federation s five-fold Environmental Ambition. As a member of the Scottish Food & Drink Federation, Pinneys has been supported by them through the process of developing their environmental strategy which focuses on seven areas: climate change, water usage, sustainability, people, packaging and raw materials, product development and waste. We can learn a good deal from five countries that have already tackled some or all of the issues we need to address here in Scotland: Italy Italia Del Gusto is a high-profile commercial collaboration that was set up as a private consortium. It offers a key route to market for major Italian food companies and smaller players. Rooted in Italy s vibrant food culture, it has helped the participating companies to act as a virtual multi-national, with a 15bn euro turnover. This is a highly successful collaboration that focuses on the premium and provenance markets, across several different categories, and has created real benefits of scale. Malaysia Malaysia has increased its halal exports by 40% in two years thanks to the government s vision of becoming the global leader in halal products. Public sector leadership and tax incentives have galvanised the private sector. Quality standards and strong branding have driven up sales of premium and provenance products, with exports organised around industry hubs where whole supply chains come environmental story, a streamlined supply chain, and a healthy scale of operations that finances solid investment in R&D. Consolidation of the processing sector there are four main lamb producers has been a key factor in New Zealand s success, along with the ability to respond rapidly to consumer trends (for example, the number of organic dairy suppliers increased tenfold to meet US consumer demands). Japan Part of Japan s rural development programme has focused on bio-clusters, regional groupings of production and processing businesses with an emphasis on food. These feature strong partnerships between businesses and bio-tech research establishments, and clear brand positioning for each cluster around a characteristic such as health. Industry initiatives are driven by a public-private foundation. They focus on small to medium-sized businesses with an integrated programme of support that leads them along the chain from research lab to consumer. Ireland Ireland s four main ingredients manufacturers (Kerry, Glanbia, Dairygold and Carbery) have a collective turnover of 5.7bn Pinneys has already diverted three-quarters of its waste from landfill, increased recycling, and reduced packaging weight and carbon footprint. A temperature monitoring system has helped them cut energy costs for cooking by nearly 12%. together. Malaysia has taken quick decisive action towards its target of generating 5% of GDP from Halal. New Zealand New Zealand exports 40% of the world s sheep meat, euros. They ve achieved this by adding value to their primary process milk production through heavy investment in R&D and by expansion through acquisitions. Their scale also enables them to invest in market intelligence and as a result they ve proved adept at responding quickly to changing Now, following a rigorous environmental audit, their targets for 2010 include further carbon footprint improvement, zero waste-to-landfill and 25% less water consumption. They also and 95% of its own dairy produce. In both cases a good percentage of products have high added value. New Zealand has strong natural products, animal welfare and consumer trends across the globe. They are entirely geared to target high growth, high margin International markets. have plans for an environmental management system.

9 09 What we re doing now 10 What can you do? This research has given us a deeper understanding of our own industry and what consumers want from it, a clearer picture of where we can go from here, and a better sense of what we must do to get there. Our overall aim is to provide as much support for our businesses across the key areas of innovation, collaboration, skills, sustainability and scale as we can. The real proof of our success will be growth of up to 1bn in premium products, 600m in provenance products and 685m in health products by We ve already accomplished a great deal. We ve laid the foundations for both a Skills Academy and a Centre of Excellence and Coaching Academy for collaboration in the supply chain. Other current developments include a new approach to market intelligence, a market development strategy, an innovation service and a research network. Now we re working hard to develop a detailed action plan which will map out precisely how we re going to increase our industry s turnover from 10bn to 12.5bn over the next seven years. The building blocks for our future as a land of food and drink are in place. We have a government and economic development agencies that support our aims and key industry organisations who are working together with real conviction and determination to realise our vision for Soon we ll have an action plan. What we need now is for everyone else to join in. This is an exciting time to be part of the food and drink industry in Scotland. The potential is huge but we need to be a cohesive, joined-up industry to realise it. There s no business so small it can t make a contribution, no business so large it can afford not to get involved. We need you to think about your own plans for growth. Do they fit with what you ve read here? Are there areas of your business where you need support? Are there opportunities for you to collaborate, to add value to what you produce, to strengthen your supply chain, develop new products, or explore new overseas markets? We can help you. If you want to get involved and play your part, call us now: Kirk Hunter Dairy UK represents the interests of dairy farmers, producer co-operatives, manufacturers of dairy products, and processors and distributors of liquid milk throughout the United Kingdom. Chris Taylor Highlands & Island Enterprise (HIE), the economic and community development agency for a diverse region which covers more than half of Scotland. Jack Matthews The purpose of Improve is to articulate employer demand for skills and deliver skills solutions for the UK food and drink sector. Its vision is World-class skills for a world-class sector. James Withers National Farmers Union of Scotland (NFUS) promoting and protecting the interests of its members by influencing government, the supply chain and consumers in order to secure a sustainable future for Scottish Agriculture. Uel Morton Quality Meat Scotland s (QMS) overall objective is to shape a sustainable and prosperous Scottish red meat industry. Its main activities focus on improving industry efficiency and promoting the Scotch Beef, Scotch Lamb and Specially Selected Pork brands. Dr Alan Rowe Rowett bring together extensive capabilities and expertise in nutritional research to pursue cutting edge science aimed at preventing disease and improving health through good nutrition. Ceri Ritchie Scottish Agricultural College (SAC) an innovative, knowledge-based organisation leading innovation and sustainable development in the rural sector. Kirk Hunter Scottish Association of Master Bakers (SAMB) represents and promotes the interests of the bakery trade in Scotland.

10 11 Data sources Tony Baker John Rutherford (1) 10bn is made up of 7.5bn (2a) and 2.5bn (3a and 3b) (8) whisky exports vs UK export data HM Revenue Scottish Development International s aim is to encourage growth of the Scottish economy by helping Scottish based companies compete in International markets, and by encouraging inward investment. Seafish, the authority on seafood, supports the seafood industry for a sustainable, profitable future. Their services and projects aim to raise standards, improve efficiency and enhance development across all sectors of the seafood business. (2a) 7.5bn turnover Scottish Government Annual Business Inquiry 2009 Scotland: Manufacture of food products and beverages (SIC 15): & Customs 2008 data ( (9) GVA comparison tracking Scottish Government Statistics Publication Notice Economy Series quarterly reports on Gross Domestic Product (GDP) for Scotland Scott Landsburgh Scottish Salmon Producers Organisation (SSPO) is responsible for representing the salmon industry in political, regulatory, technical and media issues. Flora McLean The Scottish Food and Drink Federation (SFDF) is the voice of Scotland s largest manufacturing industry. As an industry trade association, SFDF represents and promotes the interests of the (2b) 1200 processing companies (source as (2a)) (3a) Agriculture data Scottish Government Economic Report on Scottish Agriculture 2009 (10) Scottish Government : Food and Drink in Scotland: Key Facts 2009 Chart 1.13 Size of businesses in the food and drink industry in Scotland, 2007 James Graham Scottish Agricultural Organisation Society (SAOS) strengthen the profitability, competiveness and sustainability of Scotland s farming, food and drink and related rural industries and communities through the development of co-operation and venture. Paul McLaughlin Scotland Food & Drink (SF&D) is an industry led, commercially focused, membership organisation which aims to grow the value of Scotland s entire food and drink sector from farming to retailing, make it more profitable and deliver greater global success. food and drink manufacturing industry in Scotland. Alistair Prior The Scottish Government is the devolved government for Scotland and is responsible for most of the issues of day-to-day concern to the people of Scotland, including health, education, justice, rural affairs, transport and food. Scotland s National Food & Drink Policy supports our efforts to create a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth by realising the full economic potential of our food and drinks sector with better employment opportunities and more informed choices for Scotland s people. Gavin Hewitt (3b) Aquaculture and fishing data Scottish Government Annual Business Inquiry 2009 Scotland SIC 5: (4) Scotland is the second largest salmon producer in the world source Scottish Salmon Producers Organisation ( (5) and we land 70% of the UK s fish source Seafood Scotland ( (6) we have more than a quarter of the UK s beef herd source Quality Meat Scotland Red Meat Industry Profile 2009 and defra December Survey of Agriculture (2008) (published March 2009) (11) Companies House Data (12) R&D spend data Scottish Government Statistics Publication Notice Business Enterprise Research and Development Scotland 2007 (published June 2009) (13) Comparison of UK and Scottish R&D spend Scottish data UK data Office for National Statistics Research and Development in UK Businesses ( (14) Climate Change (Scotland) Act 2009 (Scottish Government) Susan Beattie Scottish Enterprise (SE) is an economic development agency supporting sustainable growth in Scotland. SE helps The Scotch Whisky Association is tasked to promote and protect the interests of the Scotch whisky industry at home and abroad and to facilitate its long term growth worldwide. (7) 40% of the nation s soft fruit crop source Genesis Consulting: Scottish Industry Mapping research 2009 ambitious and innovative businesses to grow, and works with partners to support globally competitive sectors such as food and drink.