News article
10 December 2020
Fall in food and drink exports exposes urgent need for business support
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9 December 2020
In the third quarter of 2020 alone, exports fell by 11.6% to £5.5bn when
compared to the
same period in 2019, as both exports to EU (-9.3%) and non-EU markets (-14.8%)
declined.
In the first nine months to September 2020, food and drink exports fell to
£15.2bn
(-12.9%) when compared to the same period in 2019.
Exports to the majority of the top 20 markets decreased from January to
September, with sales to
Spain falling significantly by -33.8%.
Ireland, a key trade partner for the UK, was the top export destination for five
of the top 10 export
product categories.
The Food and Drink Federation (FDF) has today published analysis
showing that in third quarter of 2020, food and drink exports fell by 11.6%
to £5.5bn when
compared to the same period in 2019, as both exports to EU and non-EU markets
declined. This
decrease was largely driven by the impacts of COVID-19, including the closure
of
hospitality and
travel sectors, which has meant a loss of sales into restaurants, cafés,
bars and the out-of-
home sector across Europe.
In the first nine months to September 2020, food and drink exports fell to
£15.2bn
(-12.9%) when compared to the same period in 2019. Exports to the majority of
the top 20 markets
decreased, with sales to Spain falling significantly by -33.8%. However,
exports
to Norway
experienced the most substantial increase, rising by 38.4% to £198.8m.
When looking at UK
export products, pork and breakfast cereals were the only products within the
top 10 to show growth,
up 12.7%, and 2.5%, respectively.
Ireland remains our number one market
As the UK approaches the end of the transition period, the EU remains a key
commercial partner,
with over 60% of food and drink exports heading to EU markets. Within the top
five products
exported to the EU, whisky sales suffered the most, experiencing a reduction of
19% to
£901.4m from January to September.
Ireland was the top EU destination for food and drink exports, making up almost
30% of overall
sales in the EU, reflecting the close integration of UK and Irish food and
drink
supply chains. Ireland
has been a key export market for the UK, particularly over the past 10 years,
totalling around 18% of
total sales during that time period. Most of the top 10 products exported to
Ireland fell in value terms,
with cheese and savoury snacks the only categories to show growth.
Maintaining these highly integrated supply chains across Great Britain, the
Republic of Ireland
and Northern Ireland as we leave the EU will be essential for future growth in
our industry.
Dominic Goudie, Head of International Trade, FDF, said:
“The continued decline in exports in the third quarter of 2020 shows the
immense
dilemma that UK food and drink exporters are currently facing. With less than
one month to go,
businesses are still in the dark about what arrangements will be in place
following the end of the
transition period in January 2021.
“As the UK makes it way towards economic recovery, ensuring a quick return
to
growth will be essential to strengthen resilience in our industry. It is vital
that we continue to work
closely with Government and industry partners to ensure that food and drink
exporters have the
support they need. Today’s news of the launch of Open Borders Direct®
is a most
welcome development and promises to deliver urgently needed support for UK
SMEs,
helping them
to safely navigate key crunch points when trading overseas.”
Graham Hutcheon, Managing Director, Group Operations, Edrington and Chair of the
Food and Drink Sector Council Exports Working Group, said:
“Our industry has experienced a substantial drop in exports in 2020
largely due to
the impacts of COVID-19 on the global hospitality sector, after a decade or
more
of continuous
growth. With the end of the transition period now just days away, food and
drink
businesses are
facing another massive export challenge.
“More specialist support is urgently needed to ensure our industry comes
through
these challenges and can fully take advantage of opportunities arising from new
UK trade deals. The
Food and Drink Sector Council helps to ensure a collaborative approach between
Government and
industry and in 2021 it will set out a shared action plan to drive a return to
export growth.”
More information
To speak to one of the FDF media team please call 0207 420 7140
or email press.office@fdf.org.uk.
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