The Food and Drink Federation (FDF) has released its Trade Snapshot for H1 2024, finding that food and drink exports fell 6.1% to £11.2 billion compared to the same period last year.
FDF also found that Ireland remained the UK’s largest single export market, rising 1.1% to £2 billion. However, it found that overall exports to the UK’s biggest trading partner, the EU, had fallen by a quarter (23.6%) in volume terms compared to H1 2023, while exports to the rest of the world were up 0.8%.
The research highlighted the importance of the EU, which receives 59.4% of all food and drink exports, with more than half (59%) of manufacturers saying that the UK’s relationship with the EU should be a “top priority” for the new Government.
The Snapshot showed that trade with the EU was “getting more challenging” for British food and drink businesses with growing bureaucracy as additional checks come into force. New regulations, it said, “add to the administrative burden” for companies, reducing flexibility and increasing costs for food and drink.
FDF said a Sanitary and Phytosanitary (SPS) agreement would reduce checks, while boosting practical export support would help companies navigate export processes. It also stated that reviewing and simplifying the use of Common User Charge would also help businesses.
Balwinder Dhoot, director of industrial growth and sustainability, said: “The UK’s food and drink businesses make brands and products that consumers love, not just at home but across the world. However, these figures show that manufacturers are facing increasing bureaucratic barriers when exporting, particularly to the EU.
“There is a lot the Government could do to build exporters’ confidence and support businesses to compete overseas and expand into new markets, including by removing bureaucratic trade barriers.”
Looking outside Europe
Exports to India rose by 11.9%, reaching £127.2 million in H1 2024 compared to the same period last year, and FDF said that “increased market access through a well-balanced free trade agreement (FTA) has the potential to build on this success and boost trade with India”.
Another market that FDF said could expand for UK exporters is the UAE, with exports rising steadily by 2.4% in H1 to £202.4 million. The Snapshot detailed how an “ambitious trade agreement with the Gulf Cooperation Council (GCC) could drive significant growth in trade”, as seen under the UK-Australia FTA, where exports increased by 7.1% to £196.7 million.
Imports rose again by 3.2% to £31.1 billion in H1 2024. Morocco (29.4%), South Africa (24.0%) and New Zealand (22.8%) saw the largest increases. However, FDF said with 70.8% of UK imported food and drink coming from the EU, as with exports, the removal of non-tariff barriers would make a “real difference”.
FDF research shows that, for nearly half (47%) of members, administrative costs are a “barrier” to imports. Removing these obstacles would reportedly keep the cost of imports down and “help ensure the UK’s continued food security”.
