Dozens of smaller producers could beat the recession by grabbing a slice of the potentially lucrative public procurement pie, the Scottish Government has said.
During a visit to Perth, rural affairs secretary Richard Lochhead said a new guide would allow small and medium-sized businesses to bid for public sector catering contracts, while also improving the food offered at Scottish schools and hospitals.
The guide has been produced by the Scottish Agricultural Organisation Society (SAOS) and Scotland Food and Drink with the Scottish Government’s support. Schools, colleges, hospitals and prisons are all being encouraged to look at how to make their procurement activity more accessible to smaller suppliers.
Mr Lochhead said their efforts could result in a wealth of fresh opportunities in the £130 million per annum market.
During the launch at Perth Grammar, he said, “Scotland is a land rich in top quality produce. It only seems right that our schools and hospitals make the most of having such a wonderful natural larder on their doorstep.
“This guide provides practical guidance to businesses interested in getting a foothold in selling quality food and drink to the public sector. It will help dispel any notion that these contracts are off limits or too complex for smaller-sized food producers and manufacturing businesses.”
Mr Lochhead believes smaller producers have much to offer.
“The public purse always looks for value for money but we recognise that price is not the only factor,” he continued. “Food is not just a commodity. It affects our health and our environment. That is why we firmly support sustainable public procurement.
“This guide contains a wealth of information, which I hope will see many more small and medium-sized enterprises competing and winning contracts to deliver healthy, sustainably produced food and drink in schools, hospitals and across the public sector.”
Alan Stevenson, supply chain development director at SAOS, is similarly enthusiastic.
“The guide was developed using the real experiences of those involved in public procurement throughout Scotland,” he said. “They have helped provide an invaluable insight into the tendering process and procedures on a practical level.”
Among those already enjoying a slice of the public pie is StirFresh, which struck up an agreement with Tayside Contracts. Originally a farming business, StirFresh is now a key supplier of prepared fruit and vegetables.
Owner Andrew Stirling said, “Our family farming business has worked with the public sector for a number of years, supplying fresh produce grown on the farm to schools and hospitals.
“We have shown a willingness to change and grow and would encourage others to do the same. We are fully supportive of the drive to get more fresh and healthy produce into Scotland’s public sector.”
Paul McLaughlin, chief executive of Scotland Food and Drink, added, “This guidance is a strong example of different sectors collaborating to maximise the value of Scotland’s food and drink industry. I would urge enterprises to take advantage of the valuable advice on offer and use it to boost their business both in Scotland and further afield.”
Call 0845 601 3752 or email helpline@scotlandfoodanddrink.org for the guide.