Food and drink exports from the UK are starting to recover from the challenges of the pandemic and Brexit, with manufacturers taking advantage of new trading relationships across the world.
This is according to a new study by the Food and Drink Federation (FDF) that offers a breakdown of exports from across the UK during 2021.
The UK Food and Drink Exports report shows that Scotland, Wales, the West Midlands and the North East of England had the strongest export growth, reflecting a recovery from the supply chain problems caused by Covid and businesses having to adapt to the new UK-EU trading relationship
Key findings from the report include:
- Scotland accounts for the largest share of UK food and drink exports, with almost 30% of total exports. This was worth £5.7bn, up 14.6% since 2020.
- Wales is the only UK nation to exceed pre-Covid export levels. This was driven by strong exports of cereals, up 173% since 2020, and now worth nearly £140m to the economy.
- The North East saw the largest increase reaching £280m – a 20.4% increase from 2020 – while the West Midlands grew by £810m, a 12.6% rise from two years ago.
The study noted that the share of exports to non-EU markets is increasing, with strong growth in London as companies take advantage of the opportunities to grow exports through the UK Government’s new global trade deals. However, the FDF stressed that more could be done to improve the implementation of the UK-EU trade agreement and help companies recover exports in the EU alongside growing market share in other global markets.
Russia’s invasion of Ukraine is not factored into the report, with the FDF stating that it is yet to understand its full impact on the sector’s exports and on the global supply chains on which the industry relies for some ingredients, such as vegetable oils, cereals and white fish.
The FDF’s Chief Executive Karen Betts commented: “It’s very encouraging to see exports starting to recover across many parts of the UK, with companies starting to pull out of Covid-related disruption and adapting to the UK’s new trading relationships with countries around the world. Every product we export is rooted in our culture and our communities, and it’s great to see that our food and drink is sought out by consumers all over the world.
“Our report also shows the vital role that food and drink manufacturing plays in every community across the UK’s four nations, and how central our sector is to prosperity at home as well as in driving exports overseas.”
Minister for Exports Mike Freer added: “It’s brilliant to see food and drink companies from every corner of the UK selling their products to the world, growing our economy and supporting jobs across the country.
“Our 12-point Export Strategy, Export Support Service and new network of agri-food and drink attachés are all ways we’re supporting businesses to boost their exports and take advantage of exciting new opportunities across the globe.”
NAM Implications:
- Key is ensuring you are getting your fair share of these increases…
- …and checking how your gains go some way towards replacing lost Brexit sales.
- The only real context…
