Recovery in sales of scotch and salmon to non-EU countries are leading a bounce back in exports, according to the latest figures from the Food and Drink Federation.
Sales to non-EU countries grew over 8% compared to 2020, driven by a strong recovery in exports of whisky (+18.7%) and salmon (+20.6%), and with breakfast cereals and soft drinks back above pre-pandemic levels.
Exports to East Asia are recovering faster than in most other regions, with exports to China of food and drink worth over £800m and close to overtaking imports. The boom has been aided by a new UK-Japan trade agreement entering into force in 2021.
Israel is an important trade partner for UK food and drink companies, with potential to expand UK trade with Israel through the renegotiation of the existing preferential trade agreement. We have seen growth in both exports (+26%) and imports (+22%) with the country since 2020.
In Central and South America, the sector saw exports increase by 62% since 2020 – above pre-pandemic levels.
Food and Drink Federation Chief Executive Karen Betts said: “These figures are encouraging, with rises in UK food and drink exports across the Americas and in Asia. Less good was our export performance in established markets in Europe and Australasia. But we have a good base to build on, and the FDF is committed to working closely with the UK government and devolved administrations to ensure that their weight is fully behind further building exports in great British food and drink.
“With the UK Government rightly determined to improve the performance of food and drink on the global stage, we anticipate further new opportunities for UK exporters to emerge overseas over the coming years. However, a key priority for our sector remains improving the implementation of the UK-EU trade agreement. Sales to the EU fell by 12% compared to 2020, with much of the drop in the first quarter of 2021 when many UK businesses paused movements and supplied customers with stockpiled goods. The FDF’s research shows there were significant improvements towards the middle and end of the year.
“One unknown is the impact of the war in Ukraine. Already we are seeing the conflict push up energy prices and impact on supplies of certain key ingredients, including vegetable oils, cereals and white fish, all of which are vital for many of our importers.”
John Whitehead, Director of the Food & Drink Exporters Association said: “We are pleased to see that exports are recovering in certain regions and in selected product categories. Finding customers in new markets is particularly challenging at a time when supply chain issues, shipping costs and inflation are impacting pricing, and our members continue to report major issues with bureaucracy as they strive to retain sales and win new business. With travel now opening up, our team is rebuilding its programme of UK groups at international trade shows to connect UK exporters with potential partners across the US, Europe, Japan and ASEAN countries all of which have great potential. We urge Government to increase its support for trade shows, a vital tool in accelerating international growth.”
