FDF flags 13% spike in food and drinks trade, back up to pre-pandemic levels
01 Jun 2022 --- The export and import of food and drink has peaked 13% higher than pre-pandemic levels, demonstrating excesses to major markets such as the US, Australia, Canada, Japan and the United Arab Emirates, according to research by the Food and Drink Federation (FDF). The federation’s next focus is improving the implementation of the UK-EU trade agreement to elevate trade levels within and from the region.
“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,” says Nicola Thomas, director, Food & Drink Exporters Association.
According to the FDF’s Trade Snapshot, imports rose 5%, while exports to the country saw strong growth, up 26% from pre-pandemic levels.
Exports to India are up more than 25% compared to pre-pandemic levels. The country is a significant import partner, particularly for agricultural goods, which account for £172.5 million (US$217 million).
“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,” explains Thomas.
UK-EU trade agreement under microscope
The FDF wants to improve food and drinks global performance.
The UK government is determined to improve the performance of food and drink on a global stage contingent on improving the implementation of the UK-EU trade agreement, the FDF reports.
The impact of the war in Ukraine is a factor not accounted for in the FDF’s trade calculation, where energy prices are rising and the supply of key ingredients such as vegetable oils, cereals and whitefish is strained. These commodities are vital to the FDF’s importers.
UK food and drink imports have recovered very well, significantly higher than in 2019. The FDF expects further growth in food and drinks exports based on the foundations of the UK-Japan trade agreement, which came into force in 2021 and prospective deals with Australia and New Zealand.
Canada and India are currently in negotiations with the UK government over free trade deals which also represent significant export opportunities. The federation aims to prioritize the process of securing improved market access for UK exporters of cheese to Canada and hopes the deal can deliver improved border checks.
India’s rapidly growing middle class presents significant opportunities for UK exporters. Demand is booming in the country within the health, organic, fortified and ready-to-eat packaged food sector, the FDF reports.
“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,” says Dominic Goudie, head of international trade, FDF.
“This is particularly important now, at a time of soaring costs to businesses and consumers, that the UK utilizes trade as a deflationary weapon,” Goudie outlines.
By Inga de Jong
