The value of UK food and drink exports grew 10.5% last year to reach a record figure of more than £20 billion, according to the Food and Drink Federation (FDF).
The Scotch whisky industry contributes almost £5 billion to the UK’s economy, according to separate figures from the Scotch Whisky Association.
Aside from alcohol, the three top three export categories remain chocolate, salmon and cheese. Exports of salmon were up 16.4% overall, driven by increases of 32% in exports to France, 25% in exports to Ireland, and almost 100% in exports to Germany.
The results represent the 16th consecutive year in which the UK’s food and drink exports have grown.
The US is now the country’s second largest export market and the largest outside Europe, with exports increasing by 13% to £2.2 billion in 2016. That figure bodes well for the country’s future outside of the European Union (EU), following its decision to leave last year.
Salmon, cheese and chocolate were the UK’s biggest food exports.
This now means the UK’s two largest export markets, Ireland and the US, together buy more than a quarter of all UK food and drink exports.
Sales to non-EU markets continued to grow at a faster rate than to the EU, though 71.4% of all food and drink excluding alcohol was sold to EU member states.
FDF director general Ian Wright said: “British food and drink exports have hit a record high, yet there is still massive untapped potential. More specialist support for new and existing exporters, with fiscal incentives and financial assistance, would get more of the country’s 6,500 food and drink producers exporting. Our target is to grow branded exports by a third by 2020 to more than £6 billion.”
The goal is echoed by the UK government’s International Action Plan for growing food and drink exports, which includes ambitious efforts to increase the capability, productivity and skill set of the UK’s food and drink industry. Research reported by FoodBev last year claimed that UK industry loses out on a potential £141 billion due to a lack of exporting among small and medium-sized companies.
Wright continued: “Competing nations such as France, Germany and Italy offer greater support for training, help with start-up costs and showcasing opportunities at international trade show platforms to build their band of exporters. Building on the International Action Plan, we are working with government and the Food & Drink Exporters Association (FDEA) to help businesses in this sector compete abroad and meet rising demand for British produce.”
FDEA director Elsa Fairbanks added: “We are pleased to see that the 2016 export figures reflect the positive experiences that the food and drink exporting community continues to share with us.
“Hopefully even more UK food and drink producers will be inspired to look beyond their home market and take advantage of the huge interest in quality UK food and drink produces and the improved competitiveness of sterling.”
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