London, UK: Exports of UK food and drink were down £2bn in the first half of 2021, compared to pre-Covid levels, because of a sharp drop in sales to the EU, according to the Food and Drink Federation.
A combination of the ongoing impacts of the Covid-19 pandemic, and new barriers to trade resulting from the new trading arrangements, have led to a fall in exports to the EU of more than a quarter since the first half (H1) of 2019, the Food and Drink Federation says.
Exports to nearly all EU member states fell significantly, including a loss of more than £0.5bn in sales to Ireland, while sales to Germany, Spain and Italy are each down around a half since H1 2019.
However, sales of UK food and drink to non-EU countries were up 13%, accounting for 46.6% (£4.3bn) of all UK food and drink exports in the first half of 2021, driven by a return to growth in China, Singapore, Australia, Japan and the Gulf region. This increase means non-EU exports are now almost back to pre-Covid levels.
In the UK imports of food and drink were down nearly 10% in the first half of 2021 compared to pre-Covid levels. However, imports from non-EU markets increased during this period. Imports from the EU were particularly badly affected by the pandemic and the new trading relationship, falling nearly 15% since 2019, a loss of £2.4bn.
Dominic Goudie, head of international trade, Food and Drink Federation, said: “The return to growth in exports to non-EU markets is welcome news, but it doesn’t make up for the disastrous loss of £2bn in sales to the EU. It clearly demonstrates the serious difficulties manufacturers in our industry continue to face and the urgent need for additional specialist support.
“At the same time, we are seeing labour shortages across the UK’s farm-to-fork food and drink supply chain, resulting in empty spaces on UK shop shelves, disruptions to deliveries and decreased production. Unless steps are taken to address these issues, the ability of businesses to fulfil vital export orders will be impacted.”
