Talking Retail Grocery and product news for independent retailers
In a letter, the groups stress the damage that coronavirus has caused this year and warn that the “fallout from a no deal would be catastrophic”. The UK’s Brexit transition period is set to end on 31 December.
The letter states: “The end of the transition period and ever-increasing uncertainty on the terms of our new trading arrangement with the EU compounds these concerns. The EU is the destination of 70% of our food exports. It is also the largest market for Scotch whisky. Indeed, our food and drink exports are four times more important to the Scottish economy than to the English economy.
“Tariffs, border disruption for high-value perishable goods, and certification costs are all far greater threats for the food and drink sector than they are for other sectors in the economy. And our food producers are extremely reliant on labour from the EU, such as the North East where over 70% of the workforce in seafood processing are EU nationals.
“So, what we do in the next 60 days is critical to the survival of many food, drink, farming, fishing and seafood businesses, and the supply chain and jobs they support.”
The letter also states: “There are immediate steps that need to be taken by the UK government to avoid enormous damage to our industry – one that has faced a multi-billion-pound impact from the Covid-19 pandemic.
“As you will be aware, food and drink is one of Scotland’s fastest-growing and globally recognised sectors, with a value of £15bn per annum and employing 120,000 people in communities the length and breadth of Scotland. The sector is critical to Scotland’s economy as one of the biggest employers, particularly in coastal and rural communities where businesses, large and small, are the lifeblood.”
SWA chief executive, Colin Smith, said the trade association had ensured the letter stated that distributors were included within the businesses asked to be given a financial compensation package, where they encounter losses as a direct result of border or market disruption.
The signatories to the letter are: Scotland Food & Drink; Food and Drink Federation Scotland; National Farmers’ Union Scotland; Quality Meat Scotland; Scottish Agricultural Organisation Society; Scottish Association of Meat Wholesalers, Scottish Bakers; Scottish Salmon Producers’ Organisation; Scottish Seafood Association; Seafood Scotland; and the Scottish Wholesale Association.
