UK Food and Drink Federation: H1 exports fall for the first time since 2015
02 Oct 2020 --- The UK Food and Drink Federation's (FDF) latest report shows that exports of food and drink in the first half of the year fell for the first time since 2015. The data shows that when compared to the same period last year, exports had fallen by 13.8 percent, to £9.7 billion (US$12.5 billion). The FDFD says this is clearly linked to the COVID-19 pandemic.
Exports to all but three of the UK’s top 20 export markets fell, with sales to China (+0.3 percent), Canada (+6.7 percent) and Norway (+46.9 percent) seeing growth during the first half of the year.
Of the UK’s top ten export product categories, only pork saw positive value growth (+17.5 percent) with sales of £300 million (US$387 million). This was largely driven by exports to China which purchased £132 million (US$170 million) of UK pork in H1.
“A fall in exports in the first half of 2020 demonstrates the huge challenge currently facing UK food and drink exporters. We also have serious concerns about our access to existing EU trade agreements, with more than £1.7 billion of UK exports at risk where continuity deals haven't been agreed,” says Dominic Goudie, head of international trade, FDF.
“However, there remain many opportunities overseas as we navigate our way through economic recovery, strengthen our resilience as an industry, and build relationships through new future trade agreements such as with Japan – the world’s biggest net importer of food and drink.”
COVID-19 impact on exports
While the fall in exports is clearly linked to the global impact of COVID-19, analysis shows that differing markets are at varying stages of the COVID-19 lifecycle.
China is currently experiencing a period of growth, whereas other nations are in recession.
Brand trust has been identified as a key driver of consumer purchasing decisions across all markets and an opportunity for exporters throughout the remainder of 2020. While overall exports of branded products fell by 7.1 percent in H1, sales of branded products to non-EU markets edged up by 1.9 percent.
Looking further ahead, the UK-Japan preferential trade agreement, which was announced last month, presents a key opportunity for exporters, with Japan currently the world’s largest net importer of agri-food and drink, and the UK’s 19th biggest market in H1 – worth £124.5 million (US$161 million).
Demand for imported food and drink in Japan is growing because of its aging population and a continued shift toward Western consumption patterns.
To support the recovery of UK exports post-COVID-19, the FDF, Food and Drink Exporters Association (FDEA) and the Agriculture and Horticulture Development Board (AHDB), have produced an export guide to help businesses successfully navigate the export process.
The guide signposts a range of support that can help exporters that have been impacted by COVID-19, and support for businesses post EU Exit transition.
Edited by Gaynor Selby
