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Salmon Excels Amid Decline in UK Food and Drink Exports Due to Alcohol Slump

Salmon Excels Amid Decline in UK Food and Drink Exports Due to Alcohol Slump alcohol slump, confectionery, Dairy & Soy Food, drink exports, economy, Fish & Seafood, Frozen, meat, Pan-industry, Refrigerated, Salmon, Shelf-stable, trade, UK food exports Food and Beverage Business

A decline in whisky shipments has negatively impacted the UK’s food and drink exports during the first nine months of the year, according to industry data.

Despite this, the combined exports of food and non-alcoholic beverages saw an increase, driven by the robust sales of salmon, chocolate, and beef.

According to the Food and Drink Federation (FDF), exports of UK food and drink decreased by 10.2%, totaling £16.3bn ($20.4bn) for the first three quarters of 2024. Notably, whisky sales—predominantly Scotch—dropped 36.4% in value, amounting to £2.8bn, alongside a volume decline of 28.5%.

The FDF attributed this downturn to “high food and drink inflation,” which bolstered revenue despite a 16.3% drop in volume. Nonetheless, salmon exports surged by 31.8% in volume and increased by 27.5% in value, reaching £693.4m. Similarly, UK chocolate exports rose by 15.7%, contributing to a 9.4% increase in sales to £656.7m.

Moreover, UK beef exports experienced gains, with an 11.3% rise in volume and a 13.4% increase in value, as reported by the FDF.

Although the EU continues to be the largest trading partner for UK food and drink exports, sales fell by 5.3%, amounting to £9.8bn. The FDF highlighted “persistent administrative burdens” that create trade barriers with Europe.

The US, which faces the threat of higher import tariffs under President-elect Donald Trump, remains the UK’s third-largest export market.

By value, exports to the US declined by 7.9%, totaling £1.6bn. The FDF remarked, “Any opportunity to reduce the friction at borders and avoid any tariff increases would help the UK to maintain and grow trade with this high-value market.”

Tables and charts showing select data for UK food and drink exports in the first nine months of 2024
Credit: FDF / His Majesty’s Customs & Excise

Commenting on these overall figures, Balwinder Dhoot, director of industry growth and sustainability at the FDF, stated: “These figures highlight the challenges that UK food and drink continue to face when selling their products abroad. This is particularly true for the 12,000 SMEs in our industry, who struggle to overcome the administrative burdens of exporting. Providing more support for these businesses will help the UK strengthen its international trade and maintain its competitive position on the global stage.”

Dhoot added, “While there are many exciting opportunities beyond Europe, maintaining our positive trading relationship with the US, where millions continue to enjoy British tea and biscuits, is essential.”

“By joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), we’ve forged stronger relations with 11 new countries. Gaining better terms for trading and removing friction at borders enables food and drink manufacturers to access diverse markets and build more resilient supply chains.”

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