14 Jul Interview with Iain Baxter, CEO, Scotland Food & Drink (SF&D)
What has fueled the growth of Scotland’s food and beverage industry over the past five years and where is the sector heading in 2025 and beyond?
Whisky has been a global success story for over a century and remains a driving force behind Scotland’s reputation for premium, high-quality products. Its strong focus on terroir and provenance has helped pave the way for other sectors like salmon, red meat and now dairy to thrive. These industries build on Scotland’s heritage, craft and natural excellence, showcasing to the world the exceptional quality we offer.
What are the most urgent challenges facing producers in 2025 and how is the industry turning pressure points into opportunities for innovation and growth?
Our recently published policy prospectus outlines key questions of the Scottish and UK governments. While many challenges are global, like achieving net zero, Scotland’s food and drink sector faces unique rural issues. High-growth areas like dairy and soft fruits, which thrive in our ideal climate, rely on skilled people in places where automation is harder. The same goes for our seafood sector.
The issue isn’t demand — there is a strong appetite for Scottish products both at home and globally — but ensuring we have the capacity, skills and workforce to meet that demand. With innovation and a growth mindset, we are confident we can rise to the challenge.
Representing over 450 members, Scotland Food & Drink is the sector’s leading trade body, responsible for implementing the national food and drink strategy. Can you introduce SF&D’s 2025 mission to our readers? What standout achievements have defined the past few years?
Scotland Food & Drink has been around for 18 years with one clear purpose: to help Scottish food and drink businesses reach their growth potential. We are unique in the world — a true public-private partnership driving collaborative, strategy-led growth. Over 90% of our sector is made up of SMEs, so we work directly with them while also shaping national strategy, which is co-authored by industry and government.
Our success lies in strong leadership and the power of collaboration. From whisky and salmon to red meat and farming, our entire industry sits at the same table alongside government, academia and research bodies. We work closely with partners like Scottish Development International and Scottish Enterprise and that collaboration is our greatest strength. Initiatives like our net zero strategy are industry-led and partnership-driven and that united approach is what I am most proud of.
The national ‘Sustaining Scotland. Supplying the World strategy, launched in 2023 with $13.5 million in government support and sets ambitious targets for the industry. What does that roadmap look like and what key steps will be crucial to hitting its goals by 2030?
We are targeting $5.4 billion in growth by 2030, with over half of that driven by exports. Export is central to our roadmap. To turn strategy into action, we have built a seven-program plan focused on key areas like policy, net zero, skills and training, ensuring businesses not only have the capacity but also the environment to grow. Our goal is to make that growth journey as smooth as possible, especially when it comes to expanding trade.
In your opinion, which specific local champions are leading the way in 2025 when it comes to innovation and how are these companies reshaping Scotland’s food and beverage landscape?
Food and drink is Scotland’s largest manufacturing sector and innovation is thriving, especially in areas like net zero and primary production. The whisky industry is leading in carbon capture, while dairy is advancing through new breeding technologies and infrastructure, such as our recent investment in Galloway. We have also backed the $27 million ONE SeedPod innovation hub in Aberdeen, giving SMEs access to cutting-edge production facilities and support. These are just a few examples of how we are driving innovation across the sector.
Scotland’s food and drink industry is committed to reaching net zero by 2045, in line with the national target. The first step is understanding our baseline emissions, from field to consumer, which has been a major challenge given the sector’s scale and complexity. However, we are making strong progress. Industries like whisky and aquaculture are already leading the way. As carbon credentials become key to market access, we are investing heavily in measurement and innovation, like electric logistics and supply chain improvements. With strong collaboration across sectors and Scotland’s renewable energy strengths, we are well positioned to become one of the world’s lowest-carbon food producers.
What digital technologies such as automated warehousing, real-time monitoring and robotics are delivering the biggest results today and which up-and-coming tools such as AI are poised to disrupt the sector in the near future?
Primary production is central to Scotland’s food and drink sector and it’s key to our decarbonization efforts. At the recent Royal Highland Show, new government funding was announced to support this area. I am especially excited by tools like LIDAR and advanced farm-level data, which help us better understand and manage our land.
Across the supply chain, we are seeing growing investment in electric logistics and automation, while AI is playing a bigger role in manufacturing. These innovations are crucial both for exports and for strengthening our domestic market. At Scotland Food & Drink, we closely track consumer trends and dietary shifts, which are reshaping both supply chains and global demand. For example, protein is a fast-growing category, especially in markets like India, where we already have strong trade ties.
We also need to consider the impact of emerging factors like weight-loss drugs on eating habits. Scotland’s strength lies in quality and premium niches — like malt whisky, salmon and seafood — where we lead in value, not volume. Our competitive edge is less about scale and more about deep market insight and premium positioning.
Employing around 130,000 people, the food and beverage sector is Scotland’s top employer. However, access to labour and skills development remains one of its most pressing challenges in 2025. How is SF&D working with Skills Development Scotland and other partners to build a strong pipeline of talent and fill in the gaps?
Skills Development Scotland is a key partner, and we fund skills development in the food and drink sector through government support. We work with schools and colleges to promote the wide range of careers available, combating the outdated view that the sector is low-pay and manual labor–focused. Through co-funded graduate placements in supply chain roles, we have helped 18 graduates stay in the industry over the past six years. Our biggest challenge remains securing the right skills, especially at primary production, manufacturing and hospitality levels. We continue to work closely with the UK government on immigration policy to ensure the sector gets the skilled workers it needs across the entire supply chain.
While US tariffs have impacted some products, most notably Scotch whisky, new trade deals with the EU and India are helping offset headwinds and unlock growth. How have Scotland’s food and drink exports shifted in 2025 and what emerging markets are showing the most promise?
US tariffs remain unpredictable and we are in a holding pattern until trade deal details are clear. Uncertainty is challenging and we need clarity on what to expect. With the EU, the main concern is the fishing sector, but easing trade friction has been a big win, and the industry is broadly pleased. India offers huge opportunities, especially for whisky, which could add an extra billion pounds in exports, as well as chocolate, dairy and premium craft cheese. We are also seeing growing exports to the UAE and Gulf States, where there is strong demand for shellfish and other products.
In the US, dairy exports like ice cream to Texas show great promise. I am very confident in the quality of our products and the strong demand across many sectors and markets. Pork exports to China are also improving with recent trade changes. As a nation, we are well positioned for growth—we just need the right conditions in place.
How are you helping shape the next chapter for Scotland’s food and drink industry?
We are here to support Scottish businesses of all sizes to reach their full potential. In 2025, we will continue leading through collaborative leadership, working closely across public and private sectors to ensure everyone moves forward together. Starting from a strong position with a great global brand, our goal is to build the foundations to capture $5.4 billion in sector growth and make sure Scotland is ready to seize these opportunities.
What’s your final message to the readers of USA TODAY?
Scotland is renowned for its exceptional food and drink. Our beef, shellfish, cheese and berries reflect our rich heritage, craft and tradition. Try Scottish products — you will be delighted by their quality and taste. We are incredibly proud of what we produce, and we are confident you will be too.