The food and drink sector has achieved record export figures for the first half of 2023, according to a new report published by the Food and Drink Federation (FDF). In their Trade Snapshot H1, the FDF reveals that export sales have surged to nearly £12 billion in the first half of 2023, up from £11.5 billion in 2022.
The report highlights that the European Union (EU) has been a significant driver of this growth, as the value of exports to the EU has increased by over 7% to £6.9 billion. However, the UK food supply chain has faced multiple challenges leading to labor shortages, rising wage and energy bills, and subsequently, higher food prices, impacting export volumes.
Among the UK’s top food exports, cheese takes the lead, accounting for almost £400 million in sales, followed closely by chocolate with £386 million in sales. Salmon and breakfast cereals also perform well, with both products exceeding £350 million in sales.
Struggles in non-EU markets
While exports to the EU have seen positive growth, the FDF reports a 1.2% drop in export value to non-EU markets compared to the first half of 2022.
Dominic Goudie, the FDF’s head of international trade, comments, “Trade in UK food and drink is stabilizing after the challenges of Brexit, a global pandemic, and recent global weather events. Nevertheless, these disruptions have led to significant supply chain disruptions, surging energy prices, and volatile ingredient costs.”
Goudie adds, “The growth witnessed in the first half of the year highlights our industry’s resilience and future growth potential. As food and drink price inflation continues to decrease, we call on the Government to collaborate with the industry to address the decline in export volumes to the EU and other markets.”
Goudie continues, “We urge the Government to take note of our Trade and Investment Strategy, which outlines how Ministers can prioritize food and drink in the new independent trade policy of global Britain. Positive steps such as bolstering Defra’s network of in-market trade attachés and establishing the Food and Drink Export Council will support future growth.”
