SCOTLAND’S food and drink companies must plan ahead to remain competitive after Brexit, and now is the time to consider any requirements to establish European Union subsidiaries and apply for European regulatory licences, KPMG has warned.

The accountancy firm has also highlighted a need for food and drink companies to “run defensive scenarios” to consider business resilience in the face of changing value-added tax or customs codes, reduced access to EU migrant workers, or increased costs of overseas storage and warehousing.

Susan Dunlop, food and drink sector lead for KPMG in Scotland, said: “We are now more than a year on from the announcement of the EU referendum decision, and financial fluctuations and increased costs continue to impact on Scotland’s food and drink industry. To ensure ambitious growth targets are met and Scotland strengthens its competitive position both in Europe and globally, the sector must identify and plan for anticipated financial challenges of leaving the EU.”

She highlighted the success of Scotland’s food and drink exporters.

Recent figures from the Scottish Government showed food and drink exports in the first quarter of this year were up by 11 per cent on the same period of 2016, at £1.2 billion.