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Food manufacturing: a stabilising force in uncertain economic times

The Office for National Statistics continue to publish results showing that the UK food and drink industry has outperformed all manufacturing sectors in 2011 in terms of output.

In fact over the last two years food and drink producers have maintained the most consistently stable levels of production of all the manufacturing sectors as well as exhibiting the highest index level throughout most of 2011.

Production Index for Manufacturing

The Production Index for Manufacturing graph above shows an index of production adjusted for seasonal changes and inflation. An index fixes production for all sectors at 100 on a particular date (in this case at a date in 2008). If production levels are higher than at 2008 levels then the index will be greater than 100.

As shown above after June 2010 food and drink manufacturing was operating at levels of production above those experienced in 2008 with most other manufacturing sectors falling behind. This trend has continued in 2011, where other manufacturing sectors saw either stagnant output or sharp declines food and drink processors operated at some of the highest levels of production since records began.

The stability in our sector is due to the success in increasing exports and maintaining demand levels throughout the economic crisis. It reflects in our industry's ability to innovate and develop new products and market them effectively to appeal to the changing consumer tastes seen since the onset of recession.

The diversity of products within our industry has also bolstered the stability of the sector as a whole with high demand for meat, fish, dairy, biscuits, pastry goods and cakes contributing to the overall index increase between September 2008 and September 2011 helped by a 32.2% increase in exports over this period.

Where most other sectors are struggling in 2011 food and drink is growing and our track record demonstrates an industry that is reliable and capable of growth in adverse conditions.