Industry calls for action as FDF Scotland warns food inflation could hit 9%

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Food and drink manufacturers are under sustained pressure from rising costs across energy, packaging, ingredients and National Insurance contributions, compounded by recent disruption to global energy markets.

As an energy‑intensive and globally connected sector, food and drink is particularly exposed, with Food and Drink Federation (FDF) now forecasting food inflation could reach at least 9% by the end of 2026.

Against this backdrop, and with 29 days until Scotland heads to the polls, FDF Scotland held a food and drink‑focused election hustings yesterday at CMS in Edinburgh. The event brought together representatives from each of Scotland’s main political parties to discuss how they would support Scotland’s vital food and drink manufacturing sector in the next parliament.

 Industry leaders questioned party representatives on their plans to help food and drink manufacturers remain competitive, resilient and sustainable during a period of intense cost pressure across the supply chain.

 The event included the following party representatives:

  • Kim Schmulian – Reform UK Scotland
  • Miles Briggs MSP – Scottish Conservatives
  • Dan Heap – Scottish Green Party
  • Daniel Johnson MSP – Scottish Labour Party
  • Wendy Chamberlain MP – Scottish Liberal Democrats
  • Euan Hyslop – Scottish National Party

 A key message to all of the politicians was the need for a stable and confident businesses environment. Discussion centred on how government can more effectively support businesses to grow and invest, how Apprenticeship Levy funds could be better invested in the skills the industry needs, and how to help food and drink manufacturers improve their environmental sustainability whilst remaining profitable.

David Thomson, FDF Scotland’s Chief Executive Officer, said:

 “Food and drink manufacturing is one of Scotland’s most important industries, but it is also one of the most exposed to rising energy costs, global supply chain disruption and policy uncertainty.

 “The hustings highlighted a shared understanding across parties of the pressures businesses are facing.

 “The next Scottish government and parliament must now work with industry to deliver practical solutions that give manufacturers the confidence to invest, innovate and develop the skilled workforce they need, while supporting the transition to net zero.”

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