Food and drink exports drop to third lowest levels on record as imports soar

The Food and Drink Federation's (FDF) latest Trade Snapshot reveals that UK food and drink export volumes fell by more than a tenth (11.7%) in the first half of 2026, reaching their third lowest level on record¹. At 4bn kg, food exports were only marginally above levels at the height of the Covid-19 pandemic and in the aftermath of the 2001 foot and mouth disease outbreak².

Meanwhile, in spite of global conflict disrupting trade flows, food and drink imports reached record highs. Import volumes reached their second highest level, at 19.1bn kg, only behind H1 2025. This highlights a concerning trend of the UK’s food and drink trade gap widening, with UK food production becoming less competitive globally, while international competitors are gaining ground in the UK market. While imports play an important role in UK food and drink production, if this gap continues to widen it risks undermining UK food security because a strong farming sector and a strong food manufacturing sector go hand in hand.

UK food loses out on the global stage

Exports to the EU remained on a downward trend³, falling 0.9% in value terms, including a decline to the UK’s top two export markets, Ireland (-4.9%) and France (-4.6%). This is rooted in the additional costs and complexity of trading with our nearest partners since Brexit, with inconsistent application of rules across member states adding to the burden.

As well as the decline in EU exports, there was a fall in non-EU exports, which dropped 6.9% in value terms. This was, in part, driven by falling food and drink exports to the Middle East as a result of the ongoing war with Iran. For example, exports to UAE fell by nearly a quarter (23.4%). The 10% tariff imposed by the US also had a major impact, with food and drink exports to the country down 16.5%. This is likely to fall further, with the latest round of US tariffs giving EU producers a more advantageous position than UK businesses⁴.

Mind the trade gap

The volume of non-EU imports to the UK were up 22% compared to H1 2023 – after the government eased controls on imports to the UK from the rest of the world⁵. Overall, the UK’s food and drink trade deficit now sits at -£21.1bn in H1 2026 – the largest it has been since 2000.

The UK business environment is playing a role. High energy and regulatory costs, alongside policy uncertainty is making the UK a less attractive place to invest, and available funds are likely going overseas instead. A CBI report on business costs estimates that burden of taxes and packaging regulations on food and drink manufacturers was nearly £10bn in 2025, equivalent to 23.8% of the sector’s GVA.

This is worsening the already large trade gap and makes the UK more reliant on imports for finished products during a period of considerable geopolitical instability. Government needs to ask itself how far it will allow this trend to continue.

With the UK suspending tariffs on a range of manufactured foods this year, the government is exacerbating an already widening trade gap and undermining UK producers by improving competitors’ access to the UK market. Instead of making it easier for international businesses to sell their goods here, it should focus on addressing the competitiveness and concerns of UK manufacturers.

As part of this, the government must reduce tariffs on key ingredients used by food and drink manufacturers, rather than packaged products. This would help to reduce the cost of making food here in the UK so that manufacturers can become more competitive both at home and abroad. With the government currently in discussions with the EU about its future trade relationship, it is also vital that UK manufacturers have adequate time to adapt to this significant change.

Karen Betts, Chief Executive, The Food and Drink Federation (FDF), said:

“Our food and drink trade deficit is growing and is now the largest it’s been in over 25 years. In a world beset by conflict and the ever-increasing impacts of climate change, this poses some stark questions about our food security.   

“The pressures on manufacturers are significant and growing, with the cost of everything they need to make food going up, from energy and ingredients, to logistics, packaging and labour. Constantly changing regulation and high compliance costs are adding to this and making UK businesses uncompetitive both here and abroad.

“When the government then chooses to remove tariffs on, for example, biscuits imported from China, it’s not surprising that they’ll be sold more cheaply here than biscuits made in the UK using British ingredients. But this is putting British products and British jobs at risk.

“As we head to Liverpool this weekend, we’re calling on Andy Burnham and his government to act on this stark evidence, working in partnership with the food industry, to ensure food producers – from farmers to the manufacturers who buy from them – can run viable businesses in postcodes right across the UK.”

Tom Bradshaw, President, NFU, said:

"These figures should be a wake-up call. At a time of growing geopolitical uncertainty, we cannot afford to take our food production capacity for granted.

“The pressures facing farm businesses are immense, from rising costs and regulatory burdens to extreme weather and global market volatility. If government is serious about food security, economic growth and national resilience, it must create the conditions that give businesses the confidence to invest, innovate and grow.

“A strong food manufacturing sector depends on a strong farming sector. This widening food trade deficit underlines the need for a clear, long-term plan that backs British production and recognises a simple truth that food security is national security.”

Notes to editors

Read the Trade Snapshot.

1. H1 2026 had the third lowest food exports volume since 2000.
2. Food and drink exports were 3.9bn kg at the height of the pandemic (H1 2021), and 3.7bn kg (H1 2002) in the aftermath of the foot and mouth disease outbreak.
3. Food and drink exports to the EU have remained below pre-Brexit levels since 2019. Food and drink exports were down 31% in 2025, compared to 2019 levels.
4. UK goods will face an additional 10% tariff on top of the US’s global tariff, whereas EU goods will just face the baseline 10% tariff, meaning UK producers will be left as a competitive disadvantage.
5. The risk-based approach to Rest of World Goods under the UK’s Border Target Operating Model was introduced at the end of 2023. 

About FDF

The Food and Drink Federation (FDF) gives a voice to the food and drink manufacturing industry – the UK’s largest manufacturing sector. We contribute over £42bn to the country's economy, supporting half a million jobs and driving growth at home and abroad. For more information on the FDF and the industry we represent, visit www.fdf.org.uk.  

For further enquires please contact the FDF Press Office or contact 020 7420 7140.