UK food, drink exports to EU down 27.4% on 2019

The UK Food and Drink Federation (FDF) announced that export sales of UK food and drink in the first half of 2021 were down £2 billion compared to pre-Covid levels in H1 of 2019 — because of a sharp drop in sales to the EU.

UK food and drink exports to the EU were down 15.9% in the first half of 2021 compared to H1 of 2020 — and down 27.4% compared to H1 of 2019.

Whisky exports to the EU were down 12.4% at £579.1 million in the first half of 2021 compared to the 2019 level of £661.1 million, although they improved on the £484 million of H1 2020.

Global exports for whisky were down 9.3% at £2 billion in H1 of 2021 compared to H1 of 2019.

Exports to the Republic of Ireland, the UK’s biggest export market for food and drink, fell significantly with a loss of 22% compared to 2020 and a loss of 27% compared to pre-Covid data — a loss of more than £500 million.

“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 H1 2019,” said the FDF.

“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.

“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 impacted by the pandemic and the new trading relationship, falling nearly 15% since 2019, a loss of £2.4bn.

“The loss of UK exports to the EU contributed to reduced demand for EU ingredients for use in UK manufacturing, while import substitution by UK manufacturers and retailers also had an impact. Imports from the EU are likely to deteriorate further in 2022 after the UK’s full border controls are in place.

“Products of animal original were heavily impacted, with a large fall in imports of pork (-19.6%), cheese (-17.6%) and chicken (-17.9%).”

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.

Dominic Goudie, Head of International Trade, the FDF, 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.”

John Whitehead, Food & Drink Exporters Association (FDEA), said: “So many factors continue to impact on the drop in value of UK food and drink exports with supply chain challenges and the inability to connect face to face with customers adding to the difficulties.

“FDEA’s bespoke support to its member community is a valuable resource to identify new opportunities and accelerate new market entry. It is therefore pleasing to see growth in sales to non-EU countries.

“However, this in no way replaces the loss of £2.2 billion sales to the EU since 2019.

“There is growing evidence that the complexity of trading with the EU has led to businesses moving operations into Europe and of importers looking for alternative suppliers, contributing to the ongoing decline in both UK exports and UK jobs.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.