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. Key findings from the report include:
- Food and drink imports have recovered very well, and are over 13% higher than in 2019, while exports to major markets including the USA, Australia, Canada, Japan and the UAE exceeded pre-pandemic levels.
- Canada is a key source of ingredients used by UK manufacturers and we saw imports rise 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 they 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 exports. 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.
With the UK Government rightly determined to improve the performance of food and drink on the global stage, a key priority for our sector remains improving the implementation of the UK-EU trade agreement. One unknown remains the impact of the war in Ukraine, where we are seeing energy prices rise and supplies of certain key ingredients – including vegetable oils, cereals and white fish – being strained, all of which are vital for many of our importers.
The Food and Drink Federation’s Head of International Trade Dominic Goudie said:
“Trade plays a key role in boosting the UK economy, with high exports ensuring food and drink companies can thrive and imports offering shoppers in the UK a wide range of quality products at prices they can afford.
“This is particularly important now, at a time of soaring costs to businesses and consumers, that the UK utilises trade as deflationary weapon.”
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.”