Food exports down by £1.1bn
SCOTTISH food and drink exports plummeted by £1.1billion in the first nine months of the year due to the impact of Covid-19 and harmful US tariffs, the industry has said.
Figures from the Scottish Government show total exports were down 22.4 per cent in the first three-quarters of 2020.
All types of food exports went down in volume except animal f eed and l i ve animals. As well as global coronavirus restrictions, tariffs on Scotch whisky exports to the US have hurt the sector, and industry leaders warn disruption caused by Brexit is on the horizon.
Higher tariffs on items such as whisky were introduced in the US last year under Donald Trump’s presidency.
The combination of that and coronavirus plus the possibility of a no Deal Brexit is a serious cause for concern, according to James Withers, chief executive of trade body Scotland Food and Drink.
He said: ‘We have never seen a drop in export sales like this before and it emphasises how horrendous 2020 has been for food and drink exporters in Scotland.
‘We now find ourselves mere days away from more potential disruption and losses as the looming threat of Brexit nears.
‘If negotiations with the EU collapse into a no Deal, tariffs will not only wipe out most of our beef and lamb exports, but they will hamper the viability of our biggest export, Scottish seafood, normally worth over £800million in sales to the EU.
‘Even if there is a last-minute deal, we cannot repeat strongly enough that food businesses, hauliers and border inspection systems are not ready for January 1.’
The Scottish Government also expressed concerns on sector recovery in the days and weeks ahead.
Rural Economy Secretary Fergus Ewing said: ‘The latest statistics show just how damaging the global coronavirus pandemic has been for overseas sales.
‘With days to go until the end of the transition period, we are still no clearer on what the landscape for exporters will look like.
‘On top of this, the US-imposed tariffs have meant that for more than a year, Scottish products, including single malt Scotch whisky, cheese and cashmere clothing, have faced tariffs of 25 per cent as part of a long-running dispute between the US and the EU over subsidies for aircraft manufacturers.’