Confidence within the UK’s food and drink industry is becoming ‘fragile’, according to a survey of Food and Drink Federation (FDF) members published today.
The survey coincides with quarterly figures from UK retailers showing food sales at their highest levels since 2013, suggesting a disparity between business and consumer confidence levels.
Following the UK’s decision to leave the European Union (EU), a majority of food and drink companies responding to FDF’s survey reported increases in ingredient prices, a drop in product margins, and concerns for the future among employees from the EU. Almost 70% of respondents are less confident about the UK business environment now than before the Brexit vote, with only around one in ten more confident.
The FDF has called for a strategy partnership with government to support the UK’s food and drink manufacturing sector, which supports 3.9 million jobs across the £108 billion UK food chain and employs 400,000 directly.
Food and Drink Federation director general Ian Wright said: “We share government’s view that we need to make the best of Brexit. Food and drink industry confidence is low. Slower revenue growth, coupled with prolonged business uncertainty, is affecting the industry’s ability to invest.
“The assurances we heard from government last week must be underpinned by credible plans for restoring confidence and negotiating a workable future relationship with the EU. Working with government through an industrial strategy partnership, we believe we can counterbalance uncertainty arising from the EU exit process and secure world-class status for the sector.”
The UK parliament’s all-party group for food and drink manufacturing will meet later to discuss the implications of Brexit on the industry.
Group chair John Stevenson said: “Brexit will present both challenges and, through sensible negotiation, opportunities for businesses in the UK’s largest manufacturing sector – food and drink. Government and industry partnership has never been more important to the future of this vital sector. It is essential that colleagues in government go into negotiations equipped with a clear understanding of this sector’s priorities, which is why open dialogue and the active participation of food companies and their representative bodies in this debate is so essential. Food and drink is a national success story, with massive untapped opportunity to boost exports and improve its already impressive productivity performance, delivering even more for the UK economy.”
© FoodBev Media Ltd 2024