Exports from Scotland’s food and drink industry rose by 1.5% in the final quarter of 2012. Although it’s down on the previous three months, it continues the strong performance of the sector; between July to September, it saw an 8.5% increase. This contrasts with the rest of the Scottish economy where, over the year to the end of December, the total volume of exports contracted by 2.9%. During the last quarter alone, export sales fell by 1.4 per cent.
The Index of Manufactured Exports showed that export volumes had remained at about 9.8% below their pre-recession levels, with the decline over the quarter mainly caused by a contraction in sectors such as chemicals, coke, refined petroleum products and nuclear fuel. Electrical and instrument engineering exports fell by 6.6%, after showing 3.3% growth in the previous three months.
John Swinney MSP
Finance Secretary
Finance Secretary John Swinney acknowledged that Scotland’s food and drink industry was “continuing to thrive on the international stage, showing that our excellent natural larder and reputation for high quality produce is celebrated around the world.
“The challenging global economic conditions continue to make it a trying time for Scotland’s export industries, which is why the Scottish Government is working closely with Scottish Development International, Scottish Enterprise and Highlands and Islands Enterprise, to support companies to expand and reach out to new markets.
“Last week’s GDP figures show Scotland’s economy grew 0.5 per cent from October to December, compared to the UK where the economy contracted by 0.3 per cent over the same period. By continuing to invest in and increase exports we can help build sustainable economic growth for Scotland and highlight the country’s position as a place of international trade and investment.”
Commenting on the figures, CBI Scotland’s assistant director, David Lonsdale, said that “the dip in the fortunes of our exporters during the final quarter of 2012 and indeed over last year as a whole is disappointing. However it will hopefully prove short lived as our own Scottish manufacturing survey – published earlier this week – reported a slight uptick in export orders in the first three months of this year, and improving confidence levels amongst industry over its export prospects for the year ahead.
“Policy makers need to put policies that promote trade and business investment at the very heart of their agendas. Breaking into new markets can be a huge leap for small and medium sized firms, which is why the CBI is calling on government to introduce a new tax credit to help SMEs get a foothold internationally. The devolved administration can assist too, by helping to establish more direct air connections to key overseas hubs and business destinations, in order to make it easier for Scots firms to access new markets and win new customers.”