The north-east is one of Scotland’s critical food and drink producing regions.
Our farmers, fishers, and food and drink manufacturers and processors are among the best in the business. From global brands and long-established family-owned enterprises to ambitious and innovative start-ups, the sector is a vital part of our economy and essential to our future prosperity.
The region accounts for more than one- fifth of Scotland’s food and drink output. It is home to a significant manufacturing sector, supporting 22,000 jobs and turning over more than £2.2 billion a year. Seafood processing alone accounts for one-third of that.
Regional and national importance
Far from being a traditional industry, food and drink has a crucial role in the region’s future low-carbon economy and in achieving national targets.
The sector is ambitious, with a renewed appetite to grow, increase exports and drive productivity following a new national industry strategy launched at the Royal Highland Show in Edinburgh on June 23.
Of course, there are headwinds – continuing challenges in costs, supply chains and labour supply.
Sector growing by 4% year-on-year
But north-east food and drink firms have often used their agility, experience and determination to adapt and overcome. The sector in the north-east is now growing turnover at 4% per annum.
So, what accounts for this growth?
Who better to ask than Stanley Morrice, who has spent his career in food and drink. He now chairs the industry board at economic development partnership Opportunity North East (One), as well as several national and international food supply businesses.
Explaining the extraordinary success of north-east producers, despite colossal challenges, Mr Morrice said: “It is down to the ambition and drive of the people who lead and work in food and drink businesses. They are passionate about what they do.
“They care about their companies and their products. And they keep looking ahead for new opportunities, markets and customers.
“Because of these qualities, they are at the forefront of the food and drink industry and a credit to this famously enterprising region.”
Food and drink success celebrated in style at annual awards bash
The 2023 North East Scotland Food and Drink Awards recently celebrated this excellence and innovation.
Delivered by One in partnership with Aberdeenshire Council, the prestigious Aberdeen event featured 12 award categories. These rewarded businesses which have continued to grow, launch new products, connect with consumers in new ways, and invest in digital transformation, automation and sustainability.
Mr Morrice said: “At One, our role is to inspire ambition and support businesses in the sector and the people who lead them to develop new products and markets, innovate and grow, be more productive and create new jobs.
“Over the last year, One – working with partners including Scotland Food & Drink and the Scottish Government – started new initiatives to boost entrepreneurship, identify investment to support rapid growth, provide access to insights and connect businesses to premium markets, as well as driving the adoption and use of digital and advanced manufacturing technology.”
These and other programmes developed, co-funded and delivered by One since 2016 have had a significant impact across the north-east. They have to date supported more than 140 businesses with growth accelerators, mentoring and leadership development.
Crunching the numbers shows impact of food and drink investments
It is estimated they have created £200 million of additional turnover and 300 new jobs.
Market development programmes are said to have benefitted 350 businesses, securing £150m of sales. According to One, digital transformation activity in agriculture supply chains has delivered £50m in productivity gains.
The north-east is also home to one of the country’s most active industry networks, with more than 1,200 people regularly participating in events.
Meanwhile, the sector’s transformational project for a food and drink manufacturing innovation “hub” – One SeedPod – is breaking new ground.
One SeedPod is a £27m investment to drive forward food and drink manufacturing and production across the region.
It is expected to help businesses become leaders in innovation, productivity, sustainability and developing foods of the future, while also growing exports and creating high-value jobs. Construction started in May and the facility is due to open in late 2024, providing a focal point for food and drink entrepreneurship in the region.
SeedPod will boast ‘unique combination’ of commercial facilities
Industry veteran David Kilshaw is overseeing the Aberdeen project’s delivery as chairman of Food Hub (NES).
Mr Kilshaw said: “One SeedPod will put food and drink businesses at the forefront of product and process innovation, and low-carbon high-value manufacturing, as well as the development of premium markets for consumer-led foods of the future.
“A unique combination of commercial facilities, sector knowledge, insights and expert networks at One SeedPod will stimulate ambition, nurture the next generation of high-growth start-ups and accelerate scale-up. The hub sits at the heart of this significant food-producing region and will be a national asset for the sector.”
One SeedPod will put food and drink businesses at the forefront of product and process innovation, and low-carbon high-value manufacturing.”
David Kilshaw, chairman, Food Hub (NES)
One SeedPod is an Aberdeen City Region Deal innovation project led and co-funded by One, working with partners including the Scottish Government and its Just Transition Fund, the UK Government, Scottish Enterprise and Scotland’s Rural College. It will offer commercial programmes and facilities in a 30,000sq ft new-build at Craibstone.
Food and drink manufacturing and supply chain businesses have welcomed the investment.
New facility a ‘significant asset’
Stuart Common, managing director at ice-cream firm Mackie’s of Scotland, said: “One SeedPod will be a significant asset, enabling ambitious new start-ups to grow and established businesses to drive ahead with product and market development and process innovation. That’ll be good news for what is an important industry and the jobs it provides across our communities.”
Dean’s of Huntly managing director Bill Dean said: “Product and process innovation and customer focus are essential for the future success of the food manufacturing sector. One SeedPod will give businesses access to commercial facilities, services and industry experts under one roof, helping new and established businesses to grow.”
Abd Ben Stuart, co-chief executive at Aberdeen-based robotics business Leap Automation, said: “It’s super exciting to see this level of investment in the region. One SeedPod will help us cement the north east’s reputation as a growing hub for innovation and automation within the sector. I’m really looking forward to sharing and collaborating with industry partners at the hub and seeing the great innovations that will undoubtedly come from this fantastic facility.”
There is little doubt food and drink is one of the local economy’s most dynamic and enterprising industries and it will be exciting to see what it achieves next, with more than a little help from One and its partners.
One SeedPod will drive forward north-east food and drink sector
Transformational industry projects are the hallmark of the north east’s drive to diversify and strengthen its economy by boosting growth sectors and the entrepreneurial ecosystem.
Opportunity North East (One) and its partners have been critical to turning opportunities and ideas into funded projects that get off the ground.
Among these is One SeedPod, funded through the Scottish and UK Government-backed Aberdeen City Regional Deal.
Long-term boost for Scotland
The One SeedPod project is expected to deliver a lasting regional and Scotland-wide impact.
According to Scottish Government Wellbeing Economy Secretary Neil Gray, it will support a just transition to net-zero in the north east, while also helping food and drinks businesses to “grow, innovate and succeed”.
Scotland Office Minister Lord Offord of Garvel said: “This fantastic new facility will boost Scotland’s world-leading food and drinks exports, and bring new jobs and investment to Aberdeen and the wider region.”
Other partners in the project include Scottish Enterprise, whose chief executive, Adrian Gillespie, said: “Food and drink is Scotland’s top international export sector and a huge opportunity area for the future. One SeedPod will accelerate its growth and competitiveness by providing the ecosystem, infrastructure and expertise that will give companies the very best chance of success and scale.”
Scotland’s Rural College (SRUC) will host One SeedPod at its Craibstone campus in Aberdeen.
Project opens door to ‘vital collaboration’
Andrew Lacey, vice-principal, commercial, SRUC, said: “The innovative project opens the door to facilitate vital collaboration between business, research and education.”
Elgin and Stirling-based Robertson Construction is the main contractor for the project.
Elliot Robertson, the company’s chief executive, said: “One SeedPod further illustrates the commitment being made to deliver transformational projects to diversify the economy in north-east Scotland.”