The UK food and drink industry is calling for the removal of red tape and closer EU relations after the sector saw export values fall 6.1% to £11.2bn in the first six months of 2024.
According to the Food and Drink Federation’s (FDF) latest Trade Snapshot, the decline was mainly driven by a fall in alcohol exports, with food and soft drink exports remaining steady.
Ireland remained the UK’s largest single export market, rising 1.1% to £2.0bn. However, overall exports to the EU, the UK’s biggest trading partner, fell by 23.6% in volume terms compared to the same period in 2023, while exports to the rest of the world are up 0.8%.
FDF pointed to research highlighting the importance of the EU, which receives 59.4% of all UK food and drink exports, with 59% of local manufacturers saying the country’s relationship with the EU should be a top priority for the new government.
The research confirms that trade with the EU is getting more challenging for British food and drink businesses due to growing bureaucracy as additional border checks come into force. This includes the second phase of border changes introduced in April, raising fees for businesses; an increase in Sanitary and Phytosanitary (SPS) check rates for meat, milk, and fish products from September; and further implementation of border controls applying to fresh produce from 1 July 2025.
The FDF stated that the new regulations add to the administrative burden for companies, reduce flexibility, and increase costs for food and drink producers – particularly for SMEs. The trade body is calling for an SPS agreement that would reduce checks and practical export support to help companies navigate export processes, particularly for SMEs. It added that reviewing and simplifying the use of Common User Charge would also help businesses.
“The UK’s food and drink businesses make brands and products that consumers love, not just at home but across the world. However, these figures show that manufacturers are facing increasing bureaucratic barriers when exporting, particularly to the EU,” said Balwinder Dhoot, FDF’s Director of Industrial Growth and Sustainability.
“There is a lot the Government could do to build exporters’ confidence and support businesses to compete overseas and expand into new markets, including by removing bureaucratic trade barriers.”
NAM Implications:
- Wise to keep in mind that the barriers are on the EU side…
- …So UK action will be limited.
- Those that can, might be better served by focusing on export development to countries other than the EU?
- Despite a long haul…
