The value of the UK’s branded food and non-alcoholic drinks exports rose to £2.4 billion in the first half of the year, according to the Food and Drink Federation’s last set of pre-Brexit figures.
Exports increased 6.2% on the same period last year – the equivalent of £141 million’s worth of extra trade.
Branded exports to non-European Union (EU) markets rose by £93.7 million – or 14% – on last year, while exports to EU countries increased by a slightly more conservative 2.9%, or £47.5 million. Exports to non-EU nations now represent 31.4% of all branded exports, up 2.2% on the first half of 2015, following a fall in overall exports in 2015.
A weaker pound at the start of the year meant that UK exports were competitive in the first half of 2016. With the price of the pound falling further since the end of June, following the UK’s decision to the leave the EU, FDF expects a further rise in exports before the end of the year as countries outside the UK take advantage of improved purchasing power against the pound.
Value growth in the UK’s export markets
The three export markets which saw the greatest value growth between 2015 and 2016 were Malaysia, up 268%; China, up 100%; and the US, up 31%.
Ireland, Germany and the Netherlands made up the top three export destinations for branded UK food and non-alcoholic drink, with exports to the value of £598 million (+1.2%), £228.6 million (+7.6%) and £196.6 million (-1%) respectively.
Top export destinations for UK businesses
The top three product categories were chocolate, salmon and wheat, with exports of vegetables, both prepared and fresh, experiencing the largest value growth.
FDF has set an ambition to grow value-added food and drink exports by a third to achieve a total value of £6 billion by 2020. The Exports – Five Steps to Food and Drink Exporting Success guide, developed by FDF and the Food and Drink Exporters Association (FDEA), was recently launched as part of an enhanced partnership aiming to help more of Britain’s 6,500 manufacturers to export their products abroad.
FDF director general Ian Wright said: “Following a weaker performance in 2015, the growth of value added exports we’ve seen in H1 is excellent news for our industry and a positive step toward achieving FDF’s export ambition. It’s also very pleasing to see non-EU exports performing beyond expectations, with UK firms taking advantage of increased competitiveness.
“We eagerly await the launch of Defra’s export plan to see how government intends on supporting our industry overseas in a time of prospective economic uncertainty.”
And FDEA director Elsa Fairbanks said: “FDEA is very encouraged by the improved export performance for the first half of 2016, which reflects the commitment that many food and drink companies are making to grow the international side of their business.
“A significant number of our members are reporting that their export customers are now proving to be a vital part of a thriving business.”
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