Food exports to non-EU countries have risen to record levels, with Australia, Canada, India, Japan and the US all seeing trade from the UK above pre-pandemic levels.
While it is welcome news, one potential problem is the war in Ukraine, where energy prices rise and supplies of certain key ingredients including vegetable oils, cereals and white fish, vital for many of our importers, are being affected.
A report by the Food and Drink Federation (FDF) Trade Snapshot reports exports to non-EU countries were up 16.2 per cent to a record £2.3 billion in the first quarter of this year and 10 per cent higher than in the same period in 2019, pre-pandemic.
The figures show food and drink imports have recovered very well, and are over 13 per cent higher than in 2019, while exports to major markets including the USA, Australia, Canada, Japan and the UAE are above pre-pandemic levels.
Who are our key trading players?
Imports from Canada increased by five per cent. The country is a key source of ingredients used by UK manufacturers, while exports soared by 26 per cent on pre-pandemic levels.
Almost as good, exports to India are up more than 25 per cent compared to pre-pandemic levels, and they remain a large import partner.
This is particularly true of agricultural goods which account for £172.5 million.
While food and drink exports to the EU remain larger and are at a much higher level at £3 billion, they are still well below pre-Brexit levels and pre-pandemic levels, with this year’s first quarter figure 17.3 per cent lower than the 2019 equivalent. However, it was up 45 per cent on the same period last year.
Export to EU hit by border checks
UK exports to the EU have been subject to checks at ports on the continent since 2021 and representatives of the seafood and meat sectors have said they’ve been further curtailed by the lack of a veterinary deal between the UK and EU.
Bloomberg reports that overall, food and drink exports in the first quarter of 2022 totalled £5.3 billion, seven per cent down from the same period in 2019.
Further deals on the horizon says report
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.
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