The survey strongly suggests that the sector will be able to build on the momentum of recent years, which has seen Scottish food exports surpass the £1.1 bn mark for the first time, with total food and drink exports valued at £5.1bn.
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“Almost half of firms (44%) said that planned investment in their business had increased since the vote result, twice as many as the 22% who said it had fallen”, according to the survey.
Nearly half of firms (44%) said that planned investment in their business had increased since the vote result, twice as many as the 22% who said it had fallen.
She added: “It’s incredibly heartening that, just weeks after the European Union referendum result, our survey shows that bullish food and drink firms expect to grow, invest, recruit and innovate”.
The survey asked firms how they planned to achieve business growth over the next five years, and the most cited response was entering new markets in the United Kingdom – 49 per cent of companies surveyed – followed by new product development (45 per cent), job creation (36 per cent) and investment in existing product (34 per cent).
However 66 per cent of firms surveyed said the vote to leave the EU had affected their plans for recruitment and 42 per cent of firms said the EU Referendum had increased their job creation plans by either a large or small amount.
“However our research shows a relatively confident and upbeat sector which recognises the challenges ahead and is finding ways to address them”.
Jane Clark-Hutchison of Bank of Scotland, said: “It’s incredibly heartening that, just weeks after the European Union referendum result, our survey shows that bullish food and drink firms expect to grow, invest, recruit and innovate”.
Food and drink producers still plan to achieve growth by entering new export markets, with 30% focusing their growth ambitions overseas – as many as a year ago – but the number of exports targeting Western Europe has fallen by 13%.
More than two thirds – 69 per cent – said they are investing or planning to engage new global customers over the next five years, and a “sharp increase” in smaller firms – those generating between £1 million and £1.25 million – looking to export, rising to 72 per cent of SMEs from 44 per cent last year. In fact, intentions to target all the major markets have declined slightly, with the exception of eastern Europe and Russian Federation, which 33% of firms now plan to target – an increase of 22% on 2015.
The annual turnover for the food and drink industry reached record levels of £14.4 billion in 2014.
Firms said they plan to invest an average of 56% of their current annual turnover over the next five years, higher than the 40% figure last year.
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Lloyds said a “broad cross-section” of 100 food and drink manufacturers and producers in England and Wales were interviewed for the study from companies ranging in size from an annual turnover of less than GBP25m (US$33.5m) to more than GBP750m. We’re investing in developing new customers across the United Kingdom and in key worldwide markets. “We are now focused on transforming those very real risks into real opportunities”. It’s important that the sector continues to focus on export growth as this is clearly a key to maximising future opportunities. Sure, the sector continues to publicise United Kingdom provenance in marketing and on packaging but there is a feeling that a challenge exists when it comes to helping the business in a substantial way. “Lloyds Bank has publicly committed to supporting United Kingdom businesses to scale up and trade internationally as part of our ambition to help Britain prosper globally and as part of our joint export commitments with The Department for International Trade”.
