Confidence remains as Brexit looms
THE Brexit end game is approaching fast, with fundamental issues still to be resolved, the Chief Executive of the Scotch Whisky Association told the conference.
Karen Betts, just back from a UK trade mission to Africa with Prime Minister Theresa May, said: “We continue to underscore the importance of reaching an exit deal this autumn, locking in the transition period to the end of 2020 and allowing us to plan properly how we do business with the EU after Brexit.”
Betts added: “A no deal Brexit would give us very real difficulties with our exports. But we have to advise members to look at contingencies if we do leave without a deal.”
She said whisky might be less affected than other sectors because it would still be able to export tariff-free to Europe, but could be hit by border delays and tariffs
Karen Betts
in America. I’m confident we can continue to succeed through and beyond Brexit and emerge as an industry in growth. But it won’t be plain sailing; there will be challenges and possibly disruption ahead.”
Betts said the industry had to keep a firm eye on longterm higher-growth markets: “30 per cent of exports go into stable and established EU markets and we hope they will continue to grow, but that’s unlikely to happen at the pace of emerging markets like India, China, Brazil, Vietnam, Colombia and Nigeria.”
Julie Hesketh-laird, Chief Executive of the Scottish Salmon Producers Organisation, also believed a strong, high- quality product would see her sector through Brexit: “Our reputation for quality and provenance across the globe gives me quiet confidence that we have a lot to be optimistic about.”
Hesketh-laird said Scottish salmon was the UK’S No 1 food export, worth £600 million annually, and the UK’S favourite fish – but she conceded the road ahead was bumpy, with severe environmental challenges as well as Brexit. Warmer weather had led to an increase in both jellyfish and algal blooms and posed difficulties for the sustainable growth sought by what Hesketh-laird called ‘Scotland’s most local global sector’.
Asking whether the industry was future-proof, Hesketh-laird said: “We have a great product – and if we don’t, nothing else matters. International demand for salmon is a success story for Scotland. If we can continue to evolve the home business environment in a meaningful way and continue conversations, the Scottish salmon industry is poised for further sustainable growth whatever Brexit brings.”
Jim Mclaren, Chair of Quality Meat Scotland, urged the food and drink industry “tae see oursels as ithers see us”. He illustrated this with a Google search on Scotch beef, which presented a very positive picture of grassfed cattle and high animal welfare standards.
Asked by Stephen Jardine about the value of the saltire in branding, Mclaren said: “The saltire works well in Scotland, not so well elsewhere in the UK and has mixed effects outside the UK. We do not use the saltire; we put the brand at the forefront rather than the flag. What is important is putting across a quality message.”
Julie Hesketh-laird said: “There was no recognition of the saltire in China, but the word Scottish evokes passion and excitement. That’s why we get a 10 per cent dividend for Scottish salmon.” n