Policy Updates

Recent conversations across the sector, including at our leadership dinner in Edinburgh in late May, have reinforced just how challenging the trading environment remains. Costs are still high, margins are tight, labour and skills challenges continue, and businesses are managing ongoing disruption linked to energy, transport, logistics, trade, changing consumer behaviour, and new regulatory demands. Businesses are reporting limited capacity to absorb further costs – and that pressure is impacting profitability, investment confidence, and recruitment, and will likely drive further food price inflation.

At the same time, we are building from strong foundations, reinforced by high-quality products, trusted provenance, safety and quality, skilled people, ambitious businesses, and a global reputation that continues to open doors. Closer UK-EU cooperation, new and developing trade opportunities, and continued government investment in industry support, all create potential. 

Our policy role is to bridge the two – understanding and responding to the pressures businesses face, while working closely with partners and government to create the conditions for long-term growth. 

For you, our members, this matters because policy decisions shape the environment you trade in. Our role is to make sure your experience, evidence and priorities are heard clearly by government and decision makers. Our goal is to turn your experiences and insight into evidence-led engagement which improves your operating environment. 

The food and drink policy landscape is rarely static. Here are some key areas front of mind at the moment.

Closer UK-EU cooperation on sanitary and phytosanitary rules could reduce friction for businesses trading with Europe, although it may also bring new compliance rules. New trade opportunities, including with India and the Gulf Cooperation Council, will create openings for premium Scottish products. However, these opportunities will only convert into commercial growth if you have the right intelligence, support, networks and buyer access.  

Scotland Food & Drink wants to help you take advantage of trade opportunities – wherever they are. So, we welcome the prospect of simpler UK-EU trading arrangements and the UK-India Free Trade Agreement which comes into force on July 15 2026.  

Beyond these core areas, Scotland’s Good Food Nation agenda, agricultural reform, climate policy, skills development, public procurement, food standards, organics, and the future of rural and coastal economies, will all affect businesses in different ways. Our role is to help ensure these issues are joined up around a clear goal; helping Scotland’s food and drink businesses reach their full potential. 

Scotland Food & Drink’s policy work is built around collaboration. 

Through the Scotland Food & Drink Partnership Policy Group, we bring major industry partners together to identify priority issues, share intelligence and coordinate engagement with government and public agencies. Current and emerging focus areas include regulation, food affordability, trade, supply-chain resilience, food standards, sustainability, workforce skills, public procurement and packaging reform. 

We are also part of the Scottish Government’s Food Sector Resilience Group, helping ensure live industry intelligence is available when resilience planning and emerging risks are being considered. 

Our policy work is strongest when it is informed by what businesses are experiencing day to day. Our membership engagement is one way we hear directly from businesses. 

Scottish Government funding is enabling Scotland Food & Drink and our delivery partners to run a substantial programme of activity during 2026-27. This includes work across priority areas such as market growth in the UK and Scotland, insights, investment readiness, strengthening supply-chains, helping business access the right people with the right skills, sustainability, and a range of business capability offerings. 

Alongside our major programmes, we are also administering the Food and Drink Processing Scheme Scotland, with Scottish Government funding expected to reach successful businesses this summer. We are also leading the Scottish Organic Action Plan 2026 – 2029, helping to develop the organic sector and strengthen supply-chain connections. We are also delivering work to support constructive industry engagement with Food Standards Scotland so that future food law delivery through SAFER is informed by practical business experience.

With the new Scottish Government in place, and funding already making a difference this year, we look forward to working constructively with ministers across the economy, rural affairs, and climate action, as well as wider portfolios including skills, health and public services. 

Food and drink cuts across almost every national priority. It is a major economic contributor, a key employer in rural and coastal communities, a driver of Scotland’s export strength, and central to wider questions of public health, sustainability and national resilience. 

More detail will follow this summer about a refreshed industry strategy and the programme structure that will support delivery in line with a new mission of ‘Ambitious, Responsible Growth’.

Scotland Food & Drink exists to help you, our members, and the wider food and drink industry. We work with businesses of all sizes and across all areas of Scotland and sectors. 

If your business is facing policy, regulatory, trade, supply-chain, skills or cost pressures, we want to hear from you. Your experience helps us build a clearer picture of what is happening across the industry and strengthens our engagement with government and public agencies. 

Our message is simple: we will continue to listen, support delivery and work constructively with partners to help Scotland’s food and drink industry build a stronger, more resilient future.