Latest data from the Food and Drink Federation (FDF) shows that in the first quarter of 2019 food and drink exports from UK firms increased by 10.7% year-on-year to £5.8bn, almost twice the growth rate of the same period last year and the biggest first quarter sales value on record.
Amid the ongoing uncertainty around Brexit, the analysis shows that food and drink export growth to non-EU markets (+12.2%) outpaced growth to EU markets (+9.9%). This was also the case for exports of branded goods which grew 15.4% and 5.9% respectively.
Growth of more than 20% was recorded in six of the UK’s top 20 food and drink export markets, with Japan recording the highest growth rate at 52.5%. Exports of all of the top 10 products increased by value in the first quarter:
While exports have shown positive results, FDF pointed to feedback received by businesses at recent trade fairs that suggests key buyers in some of the top 20 markets may no longer be willing to buy from UK exporters due to ongoing Brexit uncertainty. The organisation that represents and advises UK food and drink manufacturers stated that this could have a significant impact on export figures later in 2019.
Through its Food and Drink Sector Deal, FDF has identified five target markets (China, the Gulf region, the USA, Japan, and India) which offer significant growth potential for UK food and drink.
For example, sales to Saudi Arabia have risen by 198% in the last 10 years. Between January and March 2019, exports grew by 28.6%, moving the country into the UK’s top 20 exports markets.
Ian Wright CBE, Chief Executive, Food and Drink Federation, said:“The food and drink industry continues to out-perform expectations, delivering another quarter of exceptional exports growth despite the damaging uncertainty with which businesses have to contend.
“The rapid growth to Saudi Arabia, a key target market in FDF’s Food and Drink Sector Deal proposals, is just one example of this strength. With the right support in place our industry could deliver so much more. We urge Government to co-invest in our Sector Deal proposals and help us to provide the support our industry urgently needs to further enhance this growth.”
