Report
UK food and non-alcoholic drinks exports have hit record levels
According to a report by the Food and Drink Federation, UK exports of food and non-alcoholic drinks have hit record levels, boosted by strong performances in all product categories. Research has been carried out by Leatherhead Food International.
UK food and non-alcoholic drinks exports were up an impressive 19.6% in 2008, reaching a value of £9.23bn, with all sectors and all key markets showing strong growth. This is not only the steepest rise seen in recent history but also marks a third consecutive year of record food and non-alcoholic drink export performance.
It’s more impressive given that it comes at a time when, despite a more favourable swing in exchange rates with most major trading partners, total UK exports were starting to slow in the latter half of 2008 due to the weakening of global markets.
The devaluation of the pound against the euro and other currencies has certainly made British exporters more competitive, though the growth trend has been evident for some years now, as the country continues to build on its strong reputation as a source of innovative and quality food and drink products, and as emerging markets in particular open up to imported speciality products, the likes of which Britain is well placed to supply.
Growth areas
The rebounding meat sector (with foot and mouth disease restrictions lifted) in particular has boosted overall performance, principally in western Europe. UK lamb exports rose 43.9% and beef by 69.3% in 2008, and together these two sectors now bring in £475m of export sales.
Other key, added value food products in strong growth continue to be chocolate (+10.9%), breakfast cereals (+12.5%), cheese (+16.7%), sweet biscuits (+15.3%), tea (+14.3%), sauces and condiments (+21.0%), soft drinks (+30.7%) and cakes (+12.0%). These eight products alone now bring in export sales of £1.86bn.
Growth also continues to be fuelled by the demand for a wide range of UK food and drink products in the former Eastern Bloc countries (eg exports to Hungary +74.3% to £40.2m, Poland +53.6% to £116.4m, Latvia +51.0% to £8.6m, Slovakia +45.2% to £11.4m, Lithuania +32.7% to £9.7m).
Food price inflation will also have contributed to some of the 2008 growth (though having reached a peak in summer 2008, prices began dropping towards the end of the year).
Note: volume data isn’t available for total food and non-alcoholic drinks to compare due to the different volume measures used (tonnes, litres and units), but volume data for individual products generally shows lower rates of growth. Chilled beef, for example, grew 66% in value, but only 37% in volume terms in 2008.
To give an indication of volumes, the following are some interesting amounts from 2008:
- 121,000 tonnes of pork
- 115,000 tonnes of chocolate
- 88,000 tonnes of cheese exported (14,000 tonnes to the French)
- 87,000 tonnes of lamb
- 81,000 tonnes of beef (69,000 tonnes chilled)
- 50,000 tonnes of crustaceans (15,000 tonnes to Spain), including 17,000 tonnes of langoustines
- 28,000 tonnes of tea.
Source: Food and Drink Federation
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