A report from the Food and Drink Federation (FDF) has revealed that food export volumes to the bloc have declined by 34.1% since 2019.

FDF’s 2024 Trade Snapshot report showed that food export volumes had fallen more than a third compared to 2019 levels, while global exports fell 12.6% last year compared to 2023. FDF said this reflected a “longer-term trend”, with the UK’s global food and drink export volumes down 19.8% on average between 2020 and 2024, compared to between 2015 and 2019.

While some of this decline can be linked to global trends such as Covid-19 and the conflict in Ukraine, the report revealed that other European countries, including the Netherlands, Germany and Italy, saw their export volumes increase since 2020. This indicated that the downturn in food export volumes was not part of a global trend, but “unique to the UK’s post-Brexit arrangements”.

Imports from EU grow

The report also showed that food and drink imports from the EU to the UK grew 3.3% last year to £44.7 billion compared to 2023, as European businesses benefit from a more advantageous trading environment, even after new border checks for EU food and drink products were introduced in April 2024.

It was highlighted that food and drink imports to the UK are subject to fewer checks compared to UK businesses exporting equivalent products to Europe, helping to drive this growth. This has contributed to total food and drink imports to the UK reaching their highest ever level, worth £63.1 billion in 2024. On the other hand, the report noted, many UK exporters, particularly SMEs, are reportedly struggling to meet the EU’s more stringent requirements.

FDF found that the data revealed a “concerning gap” between UK food and drink imports and exports, and it is calling for a strategic approach to EU trade relations to “help reverse this trend”. This includes introducing a balanced SPS agreement to remove existing friction, as well as helping businesses to contend with a full range of complex trade regulations, for example by simplifying paperwork and reducing border fees.

Balwinder Dhoot, FDF director of industry growth and sustainability, said: “These latest figures show the stark reality for the UK’s 12,500 food and drink businesses who are struggling to deal with the complexity and bureaucracy that comes when trading with Europe. Government must prioritise working with the EU, and our industry, to remove as many of these barriers as possible.  

“It is important that we don’t just get a quick fix, but the right fit for the UK when it comes to our relationship with the EU. We stand ready to work with Government to develop a trade deal that will drive growth in our sector.”

Global exports increase

The EU remains the UK’s most important food and drink trade partner, accounting for 61.8% of exports and 75.6% of imports in 2024. However, global food export volumes have increased 5.7% year-on-year, as the UK benefits from recent trade agreements.

For example, two years after entry into force, further promotion of a new free trade agreement (FTA) with Australia resulted in the value of exports to the country increasing 9.1% to £429.5 million.

Additionally, while Ireland and France remain the UK’s biggest individual export markets, the USA, which took the third spot, saw “particularly strong growth” last year, up 11.8% on 2023 figures. Turkey also offers a major export market opportunity, seeing growth of 23.4% in 2024.

FDF said the UK can “harness the opportunity” that joining the CPTPP in December 2024 presents and achieve an “ambitious” trade agreement with the Gulf Cooperation Council (GCC) to continue to drive growth in emerging markets and protect its food security.

Nicola Thomas, director of UK Food and Drink Exporters Association (FDEA), commented: “Against a backdrop of global geopolitical and economic uncertainty, it is encouraging to note several new countries are potentially opening up for UK food and drink exporters as FTAs come into play.

“Here at the FDEA, we are increasingly seeing that leveraging the knowledge, expertise and experience of industry peers, international trade specialists and in-market experts has never been more important to help navigate both the opportunities and challenges that lie ahead.”