Scottish food and drink wholesalers are getting access to £8m in supply chain funding from the Scottish government’s £100m Omicron business support package, Nicola Sturgeon has announced.
The Scottish Wholesale Association has welcomed the move, given the “immediate and devastating impact” the arrival of Omicron has had on businesses and the Scottish government’s decision to defer Christmas parties.
CEO Colin Smith said it will likely bolster the funds from the Scottish Wholesale Food & Drink Resilience Fund, which was established last year to help wholesalers affected by coronavirus restrictions.
Some Scottish wholesalers lost up to 95% of their foodservice income and, in recent weeks, some wholesale businesses were still trading at 60% of 2019 levels.
“Throughout the pandemic, we have been in constant dialogue with the Scottish government to ensure they are aware of the many challenges facing the food supply chain,” he added.
“We thank ministers and officials for working with us to recognise this. We’re delighted the Scottish government have acted so swiftly to support wholesale.”
The SWA is now working with the Scottish government on the design of the fund, which includes what the application process will be and who is eligible to apply. This is expected to run in January once businesses have a better understanding of the impact. There will also be support for businesses to repurpose and redistribute unsold stock to community organisations, such as FareShare, to those in need at Christmas rather than to landfill.
“This new funding recognises the immediate hardship being felt by wholesale businesses as their hospitality, leisure and tourism sector customers cancel orders,” added Smith.
“This is traditionally the busiest time of the year and Scotland’s wholesalers were looking forward to a successful Christmas trading period to begin the process of recovery after 20 months which have devastated the industry.
“Some wholesalers are holding even more stock than usual as a result of the difficulties experienced in the food supply chain in recent months, and they are sitting on significant debt which needs to be repaid soon.
“Our members, most of whom are SMEs, are now facing the horrendous prospect of further lockdowns. We all appreciate that this support alone won’t be enough to provide financial aid to all wholesalers who need it or cover the huge losses in sales but, it will help cover some costs and address some potential food waste.”
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