The Food and Drink Federation (FDF) has released its latest trade snapshot for 2024, revealing a significant decline in food export volumes to the EU, which plummeted by more than a third (34.6%) compared to 2019 levels. In addition, global food exports fell by 12.6% year-on-year last year.
While global factors, such as the ongoing war in Ukraine and the COVID-19 pandemic, have influenced the UK’s export volumes, it is noteworthy that other European nations have experienced an increase in their exports since 2020. This indicates that the dip in UK food export volumes is not an overall global trend, but rather a consequence of the UK’s unique post-Brexit trade conditions.
Balwinder Dhoot, director of industry growth and sustainability at the FDF, emphasized, “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 prioritize working with the EU, and our industry, to remove as many of these barriers as possible.”
‘Right fit for the UK’
“It’s 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.”
In contrast, food and drink imports from the EU have risen to £44.7 billion in 2024, reflecting a 3.3% increase from 2023. This growth can be attributed to European businesses enjoying a more favorable trading environment, as claimed by the FDF.
Moreover, food and drink imports to the UK are subjected to fewer regulatory checks compared to the stringent requirements facing UK businesses exporting similar products to Europe. Consequently, this disparity has contributed to total food and drink imports reaching an all-time high of £63.1 billion in 2024.
As the gap between imports and exports widens, the FDF advocates for a comprehensive ‘strategic approach’ to EU trade relations. A new sanitary and phytosanitary agreement is essential to eliminate existing friction, along with simplifying paperwork and lowering border fees to assist businesses in navigating the intricate landscape of trade regulations.
However, the FDF’s outlook isn’t entirely pessimistic. Recent trade agreements have facilitated a 5.7% year-on-year increase in food export volumes to markets beyond the EU.
Rest-of-the-world
The promotion of a new free trade agreement with Australia has yielded a 9.1% increase in export value to the country, reaching £429.5 million. Meanwhile, France and Ireland continue to dominate as the UK’s largest individual export markets, while the US has secured the third spot with an impressive growth rate of 11.8% compared to 2023.
Turkey also presents a significant export market opportunity, as it recorded growth of nearly a quarter (23.4%) in 2024.
Nicola Thomas, director of the UK Food and Drink Exporters Association, remarked: “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 which lie ahead.”
