Food and drink trade tops pre-pandemic levels
Exports and imports of food and drink with non-EU countries have soared above pre-pandemic levels for the first time, according to research by the Food and Drink Federation (FDF).
The FDF’s Trade Snapshot examines the latest developments in the UK’s exports and imports of food and drink in the first quarter of 2022.
Food and drink imports are more than 13% higher than in 2019, while exports to major markets including the Australia, Canada, Japan, the UAE and US exceeded pre-pandemic levels.
Canada is a key source of ingredients used by UK manufacturers and imports rose 5% while exports to the country saw particularly strong growth, up 26% on pre-pandemic levels.
Exports to India are up more than 25% compared to pre-pandemic levels, and remain a large import partner – particularly for agricultural goods – accounting for £172.5m.
“With the UK-Japan trade agreement coming into force in 2021, and others on the horizon including Australia and New Zealand, we expect even further growth in food and drink export,” said the FDF.
“Both Canada and India are currently in negotiations with the UK Government over ambitious free trade deals and represent major export opportunities.
“It should be a priority to secure improved market access for UK exporters of cheese to Canada and we also hope the deal can deliver improved border checks. India’s rapidly growing middle class presents major opportunities for UK exporters. Demand is booming in the country in the health, organic, fortified and ready-to-eat packaged food sector.”
It adds that the UK Government is “rightly determined to improve the performance of food and drink on the global stage” and a key priority for the sector remains improving the implementation of the UK-EU trade agreement.
One unknown remains the impact of the war in Ukraine, which is pushing up energy prices rise and straining supplies of certain key ingredients – including vegetable oils, cereals and white fish.
Food & Drink Exporters Association director Nicola Thomas said: “Such strong growth highlights how with widespread economic and political instability around the world, a renewed focus on exporting is a crucial risk-mitigation strategy for UK Food and Drink companies in 2022.
“Having a sales portfolio spanning multiple global markets not only makes a business potentially less vulnerable to changes in the UK economy, but any losses caused by a crisis or stagnation in one country or region also stand a much better chance of being balanced out by a presence in others.”