5 years on from the UK’s departure from the EU, a brand new report from the Meals and Drink Federation (FDF) giving perception into the UK’s foods and drinks commerce efficiency over 2024, has revealed that meals export volumes to the bloc have declined by over a 3rd (34.1%), in comparison with 2019 ranges. The 2024 Commerce Snapshot additionally reveals that globally, UK export volumes fell by greater than a tenth (12.6%) final yr, in comparison with 2023. This displays a longer-term pattern, with the UK’s world foods and drinks export volumes down a fifth (19.8%) on common between 2020 and 2024, in comparison with between 2015 and 2019.
Whereas a few of this decline could be linked to world traits like COVID and the struggle in Ukraine, the report reveals that different European international locations, together with the Netherlands, Germany and Italy, have seen their export volumes enhance since 2020. This means that the downturn in meals export volumes isn’t a part of a world pattern, however distinctive to the UK’s post-Brexit preparations.
In the meantime, foods and drinks imports from the EU to the UK grew 3.3% final yr to £44.7 billion in comparison with 2023, as European companies profit from a extra advantageous buying and selling atmosphere, even after new border checks for EU foods and drinks merchandise had been launched in April 2024. Foods and drinks imports to the UK are topic to fewer checks in comparison with UK companies exporting equal merchandise to Europe, serving to drive this development. This has contributed to complete foods and drinks imports to the UK reaching their highest ever stage, price £63.1 billion in 2024. Then again, many UK exporters, notably SMEs, are struggling to satisfy the EU’s extra stringent necessities.
With the information revealing a regarding hole between UK foods and drinks imports and exports, FDF is looking for a strategic method to EU commerce relations to assist reverse this pattern. This contains introducing a balanced SPS settlement to take away present friction, in addition to serving to companies to take care of a full vary of complicated commerce laws, for instance by simplifying paperwork and decreasing border charges.
Balwinder Dhoot, Director of Business Development and Sustainability, FDF stated: “These newest figures present the stark actuality for the UK’s 12,500 foods and drinks companies who’re struggling to take care of the complexity and paperwork that comes when buying and selling with Europe. Authorities should prioritise working with the EU, and our trade, to take away as many of those limitations as potential.
“It’s essential that we don’t simply get a fast repair, however the best match for the UK in the case of our relationship with the EU. We stand able to work with authorities to develop a commerce deal that may drive development in our sector.”
The Commerce Snapshot highlights that the EU stays the UK’s most essential foods and drinks commerce accomplice, accounting for 61.8% of exports and 75.6% of imports in 2024. Nonetheless, throughout the remainder of the globe, meals export volumes have elevated 5.7% year-on-year because the UK sees the advantages of current new commerce agreements.
For instance, two years after entry into pressure, additional promotion of a brand new free commerce settlement (FTA) with Australia resulted within the worth of exports to the nation rising 9.1% to £429.5 million.
Moreover, whereas Eire and France stay the UK’s largest particular person export markets, the USA, which took the third spot, noticed notably sturdy development final yr, up greater than a tenth (11.8%), in comparison with 2023. Turkey additionally presents a serious export market alternative, seeing development of virtually 1 / 4 (23.4%) in 2024.
The UK can harness the chance that becoming a member of the CPTPP in December 2024 presents and obtain an bold commerce settlement with the Gulf Cooperation Council (GCC) to proceed to drive development in rising markets and defend its meals safety.
Nicola Thomas, Director of UK Meals and Drink Exporters Affiliation (FDEA), stated: “Towards a backdrop of worldwide geopolitical and financial uncertainty, it’s encouraging to notice a number of new international locations are doubtlessly opening up for UK foods and drinks exporters as FTAs come into play. Right here on the FDEA, we’re more and more seeing that leveraging the information, experience and expertise of trade friends, worldwide commerce specialists and in-market consultants has by no means been extra essential to assist navigate each the alternatives and challenges which lie forward.”
