The UK government has published an ‘international action plan’ in a bid to restore confidence in the UK’s fragile food and drink sector.
The plan for the next four years focuses mainly on export opportunities, following the country’s decision to leave the European Union (EU) in June.
The value of British exports rose in the six months before the EU referendum, FoodBev reported in August. But uncertainty around the UK’s decision to leave the EU has caused the devalued pound to fall against the dollar – from $1.49 before the result to lows of $1.21 this month.
The government has said that there are ‘three main strategic objectives’ for the period to 2020, including encouraging companies that already send their products abroad to export in greater quantities, and encouraging smaller companies to export for the first time.
But getting the industry to show confidence in export markets at a time of great instability and confusion will prove difficult.
The government’s calls follow research reported by FoodBev earlier this month that claimed UK industry loses out on a potential £141 billion due to a lack of exporting among small and medium-sized companies, making Britain one of the worst European economies in terms of the proportion of smaller firms that sold their products overseas.
The remainder of the international action plan revolves around ambitious efforts to increase the capability, productivity and skill set of the UK’s food and drink industry – as well as by building volume, creating trade opportunities in key markets and developing demand from untapped export destinations.
The report claimed that the objectives would be underpinned by efforts from both the government and industry to boost recognition of the UK’s food and drink output.
Writing in the action plan, the secretary of state for environment, food and rural affairs, Andrea Leadsom, and Nestlé UK & Ireland chairman and CEO Dame Fiona Kendrick, who is also the president of the Food and Drink Federation (FDF), said: “The UK is renowned for its excellent food and drink. We have an established reputation as a land of quality, reliability and transparency.
“We need to make the most of the export opportunities that result from this. As the global appetite for UK food and drink grows, it is crucial that our food and drink businesses have the tools and support they need to sell abroad.
“This action plan sets out how the government and industry will work together in partnership to deliver this boost in exports.”
The plan extends beyond the UK’s expected departure from the EU, with indications from prime minister Theresa May that this will be no later than spring 2019.
Much of the fallout of the EU referendum has so far focused on the UK’s changing relationship with non-EU markets such as China, Australia and the Commonwealth countries.
Leadsom and Kendrick continued: “We will continue to raise the profile of our world-class food industry and build our image as a great food nation. We will forge the strongest economic links with our European neighbours, as well as our close friends in North America, the Commonwealth and other partners around the world.”
Lee Holdstock, trade relations manager for Soil Association Certification, continued: “[The Department for Environment, Food and Rural Affairs (Defra)] and the Department for International Trade (DIT) today launched the government’s five year Food & Drink Export Action Plan. Officially launched at SIAL in Paris by Defra’s secretary of state, the action plan sets out how the government and industry will work together in partnership to deliver this boost in UK food exports.
“Soil Association Certification is one of 18 key food trade organisations who have contributed to the draft report, which acknowledges the significant role trade organisations will play in shaping the government’s ambition…
“The report recognises the UK’s world-leading standards of animal welfare, traceability and sustainability as key to increase overseas demand for UK food.”
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