News article
1 October 2020
H1 exports of food and drink fall for the first time since 2015
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The FDF has issued the following press release:
Food and Drink Federation: H1 exports of food and drink fall for the first time
since 2015
The Food and Drink Federation (FDF) has today published a report
which shows that exports of food and drink in the first half of the year
fell
for the first time since 2015.
The data shows that when compared to the same period last year, exports had
fallen by 13.8%, to
£9.7bn.
Exports to all but three of the UK's top 20 export markets fell, with sales to
China (+0.3%),
Canada (+6.7%) and Norway (+46.9%) seeing growth during the first half of the
year. Of the UK's top
ten export product categories, only pork saw positive value growth (+17.5%)
with
sales of £300m,
largely driven by exports to China which purchased £132m of UK pork in H1.
While the fall in exports is clearly linked to the global impact of COVID-19,
analysis by KPMG as
part of the report, highlights that differing markets are at varying stages of
the COVID-19 lifecycle.
China is currently experiencing a period of growth, whereas other nations are
in
recession.
KPMG identified brand trust as a key driver of consumer purchasing decisions
across all markets
and an opportunity for exporters throughout the remainder of the year. While
overall exports of
branded products fell by 7.1% in H1, sales of branded products to non-EU
markets
grew by 1.9%.
Looking further ahead, the UK-Japan preferential trade agreement announced in
September
presents a key opportunity for exporters, with Japan currently the world's
largest net importer of
agrifood and drink, and the UK's 19th biggest market in H1 - worth £124.5m.
Demand for imported
food and drink in Japan is growing because of its ageing population and a
continued shift toward
Western consumption patterns.
To support the recovery of UK exports post-COVID-19, the FDF, Food and Drink
Exporters
Association (FDEA) and the Agriculture and Horticulture Development Board
(AHDB), have produced
an export guide to help businesses successfully navigate the export process.
The
guide signposts a
range of support that can help exporters that have been impacted by COVID-19,
and support for
businesses post EU Exit transition.
Dominic Goudie, Head of International Trade, FDF, said:
“A fall in exports in the first half of 2020 demonstrates the huge challenge
currently facing
UK food and drink exporters. We also have serious concerns about our access to
existing EU trade
agreements, with more than £1.7 billion of UK exports at risk where continuity
deals haven't been
agreed. However, there remain many opportunities overseas as we navigate our
way
through
economic recovery, strengthen our resilience as an industry, and build
relationships through new
future trade agreements such as with Japan – the world's biggest net importer
of
food and drink.
“Looking ahead, it is vital that we continue our work with Government and
industry partners
to deliver sustainable export growth over the next few months and beyond the
end
of the transition
period in January 2021 to ensure our industry has the support it needs. Our
export guide, made in
collaboration with other industry bodies, aims to help navigate businesses
through the export process
with a range of practical support and advice.”
Linda Ellett, UK head of consumer markets at KPMG, said:
“While the world may be facing COVID-19 collectively, consumers across the world
haven't
been behaving equally. For consumer businesses, the real challenge is keeping a
finger on the pulse
of change, knowing how consumers feel and behave, whilst also adapting to the
various opportunities
and threats presented in various markets globally.
“Business growth – or at least resilience – remains vital despite the
challenging climate.
KPMG's recent consumer insights research clearly shows that trust in brands is
a
key factor shaping
purchasing decision. No consumer business can afford to lose sight of that.”
Notes for editors:
More Information
Contact Meg Bevan, Corporate Affairs Division, at: Megan.Bevan@fdf.org.uk, or 07946 340 998.
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