A new study has revealed the trend in export sales from the Highlands and Islands has risen faster than across Scotland as a whole.

In the four years to March 1999 manufacturing exports from the Highlands and Islands rose by almost 27 per cent (excluding whisky and oil). The Scottish increase, during the same period was 14.5 per cent.

The statistics also reveal varying results across different industrial sectors. The Food and Drink sector has performed especially well over the period - achieving growth of over 22 per cent, while Textile Manufacture has been in decline - with export sales falling by 45 per cent.

These are amongst the findings of the latest study into the area's exports, commissioned by Highlands and Islands Enterprise (HIE) and carried out by the SCDI (Scottish Council Development and Industry).

HIE chief executive Iain Robertson said: "Overall this is an encouraging performance from the Highlands and Islands. With the trading difficulties facing large and small exporters across the UK in recent years, such as the strong pound, we might have expected a less dynamic growth, but this rising trend shows that, over time, Highlands and Islands companies are developing a more resilient trading base.

"The powerful growth of food and drink exports is particularly good news - this is a sector we have targeted in recent years, an effort which is clearly bringing dividends. The current global shocks to oil-related fabrication and textiles present new challenges and demonstrate why we are doing so much to diversify the economy away from over-dependence on big individual sectors, by bringing new industries and jobs to the area."

In 1999 total exports from the Highlands and Islands were worth almost £400 million (pounds) ( £1.1billion including Whisky), with the area's most important markets being the United States of America, followed by the countries of the European Union.

The detailed breakdown, over the four year period shows a good performance in some sectors balancing poorer results elsewhere: # Food and Drink - up 22.6 per cent, ( down 28 per cent in Scotland); # Wood and Wood Products - up 21.3 per cent, ( down 8.5 per cent in Scotland); # Manufacture of Textiles - down 45.7 per cent, ( down 5.7 per cent in Scotland); # Fishing and Fish Farms - down 6.7 per cent, (no Scottish figure available).

The statistics for the Highlands and Islands reflect the greater role played by Small to Medium sized Enterprises (SME's) in the area, accounting for 68.5 per cent of exports. In Scotland as a whole they only generate 13 per cent of overseas trade. SME's are companies with fewer than 200 employees.

Amongst those businesses the study has revealed an optimism for the future in the Highlands and Islands, with 74 per cent of companies who responded anticipating a rise in exports in the year 2000.

It also showed that fewer companies saw a lack of market information as an obstacle to export trade, 38 per cent in 1998/99 against 56 per cent in 1997/1998. This may reflect efforts by the HIE network, the area's business organisations and local authorities to boost overseas trade through a Highlands and Islands export partnership, and provision of advice and information.

The role of the HIE Network in boosting exports is also highlighted by the findings that more companies are turning to their Local Enterprise Companies for business information, 42 per cent in 1998/99 compared with 24 per cent in 1997/98.

The adoption of Internet trading has also been included in the survey with statistics showing that 25 per cent of companies who responded use the web to reach new customers, although only 8 per cent were able to handle financial transactions through the 'net.

Iain Robertson said: "It is important for the future that the number of Highland businesses who trade using the Internet is further increased. This is unquestionably a medium which will remove barriers to trade, and we are actively working to encourage businesses to adopt e-commerce solutions."

SCDI manager for the Highlands and Islands Ewen Gabriel said: "This extended growth in exports shows that over the longer-term these markets are sustainable - a key requirement in persuading other companies to broaden their horizons and look to the potential benefits of selling overseas."

Chairman of the Highland Export Club George MacRae of White's Electronics said: "Exporters' main concern at the moment is the strength of the pound. The quality of exported goods is excellent, and improving, and niche markets are performing well, but overall trade is hampered by the high exchange rate."

The full report - "Survey of Highlands and Islands Manufacturing and Exports in 1998/99" will be available for distribution shortly.