SEAFOOD exporters are starting to lose hope in the face of post-Brexit red tape, MSPs have been told, while meat exports may never return to normal. 

James Withers, chief executive of Scotland Food and Drink, said the mood in the seafood industry is "grim". 

He raised fears the "cliff-edge shock" will get worse, with the current situation simply the "tip of the iceberg" unless action is taken. 

Charlie Adam, vice president of the National Farmers' Union (NFU) Scotland, said meat exports have been slashed to "25 per cent of normal volume" and may never fully recover.

They made the comments while giving evidence to Holyrood's Culture, Tourism, Europe and External Affairs Committee.

Exports of animal products have been thrown into chaos following the end of the Brexit transition period at the start of the year. 

Businesses have been hit by a huge increase in bureaucratic red tape, leading to costly delays, system glitches and fears for the future. 

Mr Withers said said the last few weeks had been "absolutely dreadful", with "dozens and dozens and dozens" of problems.

He said there is a "fundamental question" over whether the new system is sustainable, with further problems coming down the line.

He said it was previously as easy to sell products to Madrid as it was to Manchester, but now there are multiple different steps.

Mr Withers said buyers are already going elsewhere. 

He told MSPs: "We know of seafood buyers that are going to Denmark and Norway instead of Scotland and the UK.

"We know of red meat buyers going to Spain and Ireland instead of coming to Scotland and the UK."

He said confidence has been "shattered" in the last five weeks, impacting on the UK's reputation. 

Mr Withers said: "The mood is grim, and it's been a kind of rollercoaster of anger to disillusionment to people starting, actually, to lose hope.

"On the twice weekly calls we have with Defra [the UK Department for Environment, Food and Rural Affairs] and the seafood industry, you've seen those emotions from businesses and many just saying, 'Unless this is fixed or made easier in the next couple of weeks, we're done.'

"At best, EU trade has now become a high-risk, long-odds gamble, a lot of the time with loads that are very valuable."

He added: "We are starting to see the first signs of a fundamental restructuring of EU supply chains, and if that gathers pace what we will see is some businesses will go under, many others will just contract. 

"They'll reduce the number of people they've got in the business and they will start focusing just on home markets and crucially, will look for markets beyond the EU, but it takes a generation to build these markets."

Mr Adam said exports of meat products are still "at only about 25 per cent of normal volume".

He said smaller producers may give up trying, or lose their markets. 

He added: "I would expect [exports] to increase fairly quickly, although my point is it may never get back to 100%."

He pointed to problems around groupage – the consolidation of different products from different companies into one lorry.

Mr Adam said the problems are not due to teething problems or the impact of coronavirus. 

He added: "This is about serious structural issues and problems that need to be addressed, and I would also say that it's about urgency."