Last week, the Scottish Government announced the next steps towards Scotland's first National Policy for Food and Drink. It did so against a backdrop of 'agflation', driven by global trends like growing fuel costs and changing diets in Asia, which is giving us all food for thought.

As a food and drink producer and exporter, these changes do not just represent a challenge. Home to many of Scotland's iconic products, the Highlands and Islands' industry generates in excess of £1billion per annum and supports over 24,000 full-time jobs. So this is an opportunity for growth, and a chance to put a greater emphasis on quality, health and sustainability in production and procurement.

The discussion paper for the National Food Policy was published earlier this year, but while SCDI welcomed the intent, in our response we expressed disappointment with some of the content. We are pleased that many of our points are reflected in the new announcement.

In particular, SCDI argued that the original decision to exclude drink made no sense in creating a joined-up policy. Food and drink is the priority industry sector for Highlands and Islands Enterprise, they have common supply chains and whisky is by far the largest export. Ministers have now reversed their position.

SCDI also pressed the Scottish Government to use procurement rules to specify minimum response times or the use of 'fresh' produce, which means that supplies must come from the local area and that the successful bidder has a local presence. New guidance is to be created which The Highland Council and other public bodies will implement here.

Scottish provenance is what many consumers want. Sales of Scottish products here and in the rest of the UK are up. Sainsbury's has announced that it will stock only Scottish salmon produced by Marine Harvest, which should benefit Inverness-based Strathaird Salmon. The hotels and catering sector is increasing the level of ingredients purchased from Scotland. This should enhance Scotland's reputation as a land of food and drink, and gastronomy trails can become an integral part of holidays to the Highlands.

To meet this growing demand the Scottish Government will work with the industry to promote innovation and meet its skills needs. SCDI will continue to press for transport improvements in the Highlands, so that more goods can get to market and visitors can follow these trails.

Ministers must also ensure that the minimum pricing and promotional restrictions proposed to tackle alcohol misuse do not encourage other countries to increase duty on Scotch, damaging exports, or prevent visitors tasting a dram on a distillery tour, hitting rural tourism centres.

Ministers have now set out many ingredients for an improved approach to food and drink. But there is still some preparation left before they can present a fully joined-up policy.

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