According to research released by the Food and Drink Federation (FDF), exports and imports of food and drink with non-EU countries have soared above pre-pandemic levels for the first time.
The FDF’s Trade Snapshot examines the latest developments in the UK’s exports and imports of food and drink in the first quarter of 2022. Key findings from the report include:
- Food and drink imports have recovered very well, and are over 13% higher than in 2019, while exports to major markets including the USA, Australia, Canada, Japan and the UAE exceeded pre-pandemic levels.
- Canada is a key source of ingredients used by UK manufacturers. Imports rose 5% while exports to the country saw particularly strong growth, up 26% on pre-pandemic levels.
- Exports to India are up more than 25% compared to pre-pandemic levels.
With the UK-Japan trade agreement coming into force back in 2021, and others on the horizon having been signed-off, including Australia and New Zealand, the FDF has said it expects even further growth in food and drink exports.
Both Canada and India are currently in negotiations with the UK government over free trade deals and represent potential major export opportunities. The FDF has said that it should be a priority to secure improved market access for UK exporters of cheese to Canada.
The FDF maintains that, with the UK government expressing a commitment to improve the performance of food and drink on the global stage, a key priority for the sector remains improving the implementation of the UK-EU trade agreement.
A deflationary weapon
Head of international trade at the Food and Drink Federation, Dominic Goudie, said: “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.
“This is particularly important now, at a time of soaring costs to businesses and consumers, that the UK utilises trade as a deflationary weapon.”
Food and Drink Exporters Association director Nicola Thomas said: “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.
“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.”
