New study highlights secondary food processing opportunities in Scotland

Today, government released a new study which identifies opportunities for trans-Atlantic cooperative joint ventures between Newfoundland and Labrador and the North-East Region of Scotland in the secondary food processing industry.

The study, "North-East Scotland (Grampian) and Newfoundland and Labrador Food Industry Cooperation: an Overview of Opportunities," was commissioned under the auspices of the memorandum of understanding (MOU) signed between the Government of Newfoundland and Labrador and the Grampian Regional Council in North-East Scotland in 1995. The MOU acts as a means for promoting industrial technology exchange, research and development and training in various economic sectors.

Connections Research completed the study, which identifies potential joint ventures, product licensing agreements and other cooperative business partnerships in the secondary food processing industry. The study concluded that there is potential for developing cooperative activities in product development, marketing and distribution, technological innovation and research and development. Cooperation could be facilitated between firms and/or between industry organizations, universities and research institutes or public sector agencies.

The eight areas identified as having potential for partnering include:

- seafood products
- meats and manufactured products
- beverages
- baked goods and confectionary
- dairy products
- horticultural products
- organic and health foods
- nutraceuticals

While each of these areas has potential, the study noted that more in-depth research is required to address challenges such as the North-East Region�s awareness of Newfoundland and Labrador products, competition from other regions and differing business practices between this region and Scotland.

"This study gives us a clear indication of the potential that exists to partner with the North-East Region of Scotland. Our challenge now is to develop a long-term strategy that focuses on promoting Newfoundland and Labrador as a viable trading partner for Scotland in the secondary food processing industry," noted Industry, Trade and Technology Minister Sandra C. Kelly.

Research for the study included consultations with a range of food and beverage processors and manufacturers across Newfoundland and Labrador. There were also consultations with local authorities, business organizations and representatives from a cross-section of food processors/manufacturers in the food and beverage sector in North-East Region of Scotland.

"This study is an important step in building upon our existing trade partnerships and in creating new ones," said George Baker, Minister of Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA). "Increased trade opportunities can bring increased wealth. This study provides solid groundwork for local companies to pursue the opportunities that exist in the North-East region of Scotland."

The study also identified existing capabilities in both regions. North-East Scotland produces a variety of food and beverages, some of which are well known internationally, like Speyside whiskies and Aberdeen Angus beef. The region also produces fish and seafood; poultry; game; venison; haggis and other meat puddings; dairy products; vegetable and fruit-based foods; sweets; shortbreads and confectionary; and condiments and preserves. Newfoundland and Labrador�s food industry produces specialized and high-quality value-added products, such as fish and shellfish; red meat and poultry; sausages and puddings; specialty waters, juices and alcoholic beverages; pastas and ethnic foods; confectionary and chocolates; herbs and spices; and relishes and spices.

Funding for the study was provided through the Canada-Newfoundland Comprehensive Economic Development Agreement (CEDA), which is administered federally by ACOA, and provincially by the Department of Industry, Trade and Technology. CEDA is a five-year $50.14 million initiative designed to complement existing agreements and programs of the federal and provincial governments. This project received funding from the aspect of the agreement which focuses on investment, export trade and marketing.

The study is available by contacting Darrell O�Neill at the Department of Industry, Trade and Technology at 729-5600 or via the Internet at www.success.nfld.net/business/mougrs/index.html

Media contact:

Jacqueline Simon
Director of Communications
(709) 729-0050

Doug Burgess
Atlantic Canada Opportunities Agency
(709) 772-2935

2000 07 24          11:45 a.m.