New data from the Food and Drink Federation (FDF) shows that in the first quarter of 2020, food & drink exports fell by over £700m (-12.7%) compared to the same period in 2019.
Sales to the EU were hit the hardest, with total value falling by 17.4% compared to 2019. This decrease was largely driven by the immediate impacts of the coronavirus outbreak, including the closure of hospitality and travel sectors, which has meant a loss of sales into restaurants, cafés, bars and the out-of-home sector across Europe.
While sales to the majority of the UK’s top markets declined, demand has been more resilient from other nations, including Singapore, Canada and Norway, which each saw sales growth of more than 10%.
Declines were reported among the UK’s top ten products, with whisky, chocolate, cheese, salmon and gin seeing export value drops of over £20m. Pork, which saw an increase in value, and beef and vegetables, which saw volume increases, were exceptions to this.
The first quarter of the year also saw a fall in the value of branded food and non-alcoholic drinks exports of 9.1%. Sales to all EU nations among the UK’s top ten branded goods export markets decreased in the quarter; almost one third of branded exports are now going to non-EU countries, a 4.5pp increase on the same quarter last year.
The data shows that demand for UK branded food & drink increased in US, Australia and China. Branded exports to Australia rose by 3.5% in the quarter, driven by a rise in sales of cakes and baked goods, including tarts, pastries, wafers, pizzas and quiches, which saw a 12% increase year-on-year. Higher sales of beer and soft drinks helped drive growth to the US by 6.9%, while exports of gin, infant food and bottled water saw the value of exports to China rise to £34m.
Dominic Goudie, Head of International Trade at FDF, said: “Manufacturers and the other hidden heroes working across the supply chain have ensured continued access to essential food and drink for UK shoppers during this crisis. But we can now see how COVID-19 has impacted valuable overseas sales of UK food and drink that were worth over £23bn in 2019.
“The closure of the hospitality sector in high-value export markets in the EU and further afield has been devastating for many exporters. However, we can also see that opportunities do remain in retail channels in many markets.
“Ensuring a quick return to growth will be essential to support resilience in our industry and also the UK’s economic recovery. We are working closely with Government and industry partners to set out a recovery plan that will deliver a return to sustainable export growth right across the UK.”
