SCOTTISH food and drink firms have highlighted ambitions to ramp up their workforces and pursue international growth, with other European Union countries the main export target, while flagging recruitment problems arising from Brexit.

Bank of Scotland’s latest survey of firms in the sector, which employs more than 119,000 people, shows they plan to create 18,200 jobs over the next five years. In the previous annual survey, firms had flagged expectations of creating 14,300 jobs on a five-year view.

Scotland’s food and drink sector has proved resilient amid difficult economic conditions in recent years, with Scotch whisky and salmon among the produce in great demand around the world.

About 54 per cent of Scottish food and drink firms plan to create jobs over the next five years. This is up from last year, when 36 per cent signalled intentions to create jobs on a five-year timeframe.

Of firms surveyed, 36 per cent plan to move into new markets in the EU. And 26 per cent intend to target new markets outside the EU.

Western Europe remains the main export focus for Scottish food and drink firms, the survey shows, with 61 per cent planning to target this region, up from 48 per cent in last year’s survey.

Meanwhile, 57 per cent plan to target South America, up from 32 per cent a year earlier. And the proportion aiming to target the Middle East has risen from 31 per cent to 44 per cent.

The survey shows 61 per cent of firms in the Scottish food and drink sector are pursuing new international customers.

Bank of Scotland welcomed the survey’s finding that 21 per cent of food and drink firms north of the Border plan to grow by exporting for the first time. Among small and medium-sized enterprises in the sector, this proportion was even greater, at 31 per cent.

However, the survey shows complexity of logistics and UK political uncertainty are acting as barriers to international trade. These were each cited as barriers by 64 per cent of firms.

Scottish food and drink firms continue to project solid growth in turnover over the next five years. However, the forecast rise in turnover was slightly less than that projected on a five-year timeframe in the 2016 survey.

The survey flags staffing problems in the sector arising from the Brexit vote.

Bank of Scotland said: “Scottish food and drink firms clearly believe that headwinds are growing when it comes to recruitment, likely to be because of the industry’s reliance on EU workers.”

Rising labour costs were flagged by 44 per cent of Scottish food and drink firms as the biggest challenge facing the industry in the next five years, having been highlighted by 28 per cent of respondents last year. The proportion of firms flagging a lack of skilled labour as a challenge also rose, from 25 per cent to 33 per cent.

And 67 per cent of firms said their recruitment plans had been affected by the UK’s planned exit from the EU.

The survey found that leaving the EU remains the biggest threat to ingredient and supply security, having been cited by 44 per cent of firms.

Jane Clark-Hutchison, a director in Bank of Scotland’s mid-markets business, said: “Scotland’s food and drink sector defines us as a nation – it is a key part of our economy, our culture and our heritage, and this report shows that it remains robust in the face of economic and

political uncertainty.

“With a global reputation for quality, the sector enjoyed a record year for exports last year and, buoyed by the depressed pound, many are now planning to grow not just in Europe but across a number of overseas markets.”

She added: “Despite headwinds around the availability of skilled labour, the sector expects to create more than 18,000 jobs over the next five years.”