Anne: Why we can't be too simplistic Show president the Princess Royal believes that the future of the food chain lies in cooperation between large and small firms as well as the acceptance of a wide range of technologies, as she told Clive Beddall in an exclusive interview Spend an hour talking food, and Scottish food in particular, with the Princess Royal, and her knowledge and enthusiasm about the major issues leave the impression she could walk on to the strategy team of many a grocery based multinational. Like the Prince of Wales, she talks passionately about developing the food chain from plough to plate. Add the potential she sees for more cooperation between the larger, successful food production groups and their smaller, regional colleagues in far flung parts of the country, and you've an idea of some of the issues the Princess will have in mind during her stint as president of the Royal Highland Show. Her views on "Scottishness", the unique ingredient utilised so effectively by food firms from north of the border, are straight to the point. "Scotland's food and drink industry has a silicon valley of its own. Its people are not stuck in the past. They are positive thinkers." Even on the hottest issues, such as the UK's stance on genetically modified foods, the Princess's view is characteristically direct. "Man has been tinkering with food production and plant development for such a long time that it's a bit cheeky to suddenly get nervous about it, when, fundamentally, you are doing much the same thing. "Of course shoppers feel the speed of change is too fast to understand what the dangers are, and where the weak points might be. And that seems to me to be a perfectly valid argument. "But it is a huge oversimplification to say all farming ought to be organic or there should be no GM foods. I'm sorry, but life isn't that simple." On food chain unity, the Princess is equally forthright: "It's important all parts of the business, from top to bottom, understand how the food chain is interrelated. If they don't, the consumer never will. "The Royal Highland Show has done good work in encouraging smaller firms. Those companies couldn't possibly manage on their own. But it's surely also about them being able to piggyback off the knowledge of the more experienced operators." So what could the many smaller firms learn from suppliers like Baxters, Walkers and Mackies, for example, who have done so well in exporting? "The first thing must be quality, building a business on quality products recognised around the world. But it's also partly the family context which they have managed to maintain. "In addition, it's often about turning what was a good, standard home cooking item into a strong commercial product. And it's about building well run businesses which deliver on time. "Any industry that has grown out of Scotland has had to conquer the tyranny of distance', as it was once described. "However, I've visited comparatively small firms who have set up in out of the way places in Scotland and have done very well. But they've done it through understanding logistics and modern technology. "Unfortunately, too many people forget about logistics and its impact on the viability of the company. "Managing growth has never been easy, but if you're a small firm in a distant part of Scotland, it will be more difficult." The Princess cites innovation as an important business builder for Scottish firms seeking wider markets. "Seafood is a case in point. I was at a cannery in Fraserburgh recently where they have developed a whole new range of products and varieties ­ although sadly, it is the only fish cannery left in Scotland. "The Scots have spotted earlier than most the importance of adding value." What about organics? "I think they have their place. You can add value on the marginal farms through organics. But I fear they're not the overall answer. And you could argue that there's been an underestimation of the degree of interest in organic farming. "But, remember, this country grows good grass. If you turn the clock back in Scotland its livestock has been the bedrock of the industry. So good, traditional husbandry is no bad thing when it comes to maintaining the land. "Yet if you consider things in terms of overall production and sheer weight of numbers, of supporting a population which has so hugely increased, then organics is not the whole answer. "However, I'm sure that in some areas it will continue to be a much more important part of the farming background, and everybody will benefit in the long term." Turning to Scotland's retail sector, farmers' markets have not escaped Royal attention. "Cutting out middlemen and proving that quality is coming off the farm and going directly to the consumer is very important. It's encouraging there are enough people who want to shop at farmers' markets. "But they are never going to replace supermarkets and grocery stores, that's not realistic. However, they are at least giving consumers the opportunity to make a choice." Having said that, the Princess Royal believes the advent of internet shopping could go a long way towards helping many village shops to survive. "I recall a seminar on this issue when a voice from the back said: You're all talking nonsense. The village shop would survive if those of you who are so busy saying it should survive didn't shop in the supermarket on the way back to your villages!' That was frightfully rude, but probably right." {{FOCUS SPECIALS }}