The Food and Drink Federation (FDF) has published its Trade Snapshot report for Q1. It shows that between January and March, there was a significant decline in UK food export volumes, falling by over 20% on the year. This represents the lowest Q1 volume in the last 15 years, except for an exceptional period in Q1 2021, which saw the end of the transition period and the global pandemic.
The total export value of food and drink for Q1 stood at £5.7bn, falling 5.3% when compared with the same period the previous year. Ireland remains the UK’s largest export market, despite a fall of 3.5% to £1bn.
The findings suggest that rising costs and the global economic slowdown have been impacting trade. To help address this decline, FDF stated that improved support for exporters is needed, particularly for SMEs, which are more vulnerable to the challenges posed by new costs and processes. In addition, the trade body said the industry requires a supportive business environment that allows firms to compete overseas and doesn’t saddle companies with costly and unnecessary regulatory burdens.
Food import volumes increased by over 7% on the year and import values increased by 0.4% to £14.8bn. The report highlights the impact of the introduction of the Export Health Certificate for medium-risk EU goods in January of this year under the Border Target Operating Model (BTOM). This has led to increased costs and bureaucracy for traders, reflected in the decline of beef and poultry imports. The second phase of the BTOM, which took effect at the end of April, introduced new checks and fees, adding to the challenges faced by the industry.
Balwinder Dhoot, FDF’s Director of Industrial Growth and Sustainability, commented: “Trade in food and drink plays a critical role in the UK’s food supply resilience, and the industry contributes billions to the UK economy. Our analysis is concerning, with food export volumes seeing a significant decline by over a fifth on the year.
“The next government must help unlock the full competitive trade potential of the UK’s largest manufacturing sector by delivering a trade strategy that builds business confidence and provides greater support for exporters to arrest this decline.”
