A new report from the Food and Drink Federation (FDF) has revealed that UK food exports to the EU fell by 34.6% compared to pre-Brexit levels.
The ‘2024 Trade Snapshot’, which was published on March 13, also revealed that globally, UK food export volumes fell by 12.6% last year, compared to 2023.
This decline is part of a longer trend, with the UK’s global food and drink export volumes down 19.8% on average between 2020 and 2024, compared to the figures recorded between 2015 and 2019, the FDF reported.
Meanwhile, the report outlined that food and drink imports from the EU to the UK were valued at £44.7 billion in 2024, up 3.3% on 2023, while total food and drink imports to the UK reached their highest recorded level of £63.1 billion in 2024.
According to the FDF, this growth can be attributed to the fewer checks in place for food and drink imports to the UK, compared with equivalent procedures that UK businesses exporting to Europe are subject to.
As a result, many British exporters, particularly SMEs, are struggling to meet the EU’s more stringent requirements, the report outlined.
This downward trajectory in UK food export volumes is reportedly greater than other major European countries, demonstrating that the UK’s challenges are unique to the UK’s post-Brexit circumstances.
FDF
The FDF has called for a strategic approach to EU trade relations to help reverse this trend and help businesses contend with trade regulations, including a balanced sanitary and phytosanitary measures agreement, a simplification of paperwork, and a reduction of border fees.
FDF director of industry growth and sustainability, Balwinder Dhoot said: “These latest figures show the stark reality for the UK’s 12,500 food and drink businesses who are struggling to deal with the complexity and bureaucracy that comes when trading with Europe.
“The UK government must prioritise working with the EU, and our industry, to remove as many of these barriers as possible. It’s important that we don’t just get a quick fix, but the right fit for the UK when it comes to our relationship with the EU.
“We stand ready to work with government to develop a trade deal that will drive growth in our sector,” he added.
The EU remains the UK’s most important food and drink trade partner, accounting for 61.8% of exports and 75.6% of imports in 2024, the report showed.
Ireland was the third biggest source of food and drinks imports to the UK in 2024, reportedly valued at £5.3 billion, an increase of 12.8% on the 2023 figures.
Beef products from Ireland to the UK represented the largest proportion of these imports, at £1.2 billion, followed by cheese (£352.4 million) and savoury snacks (£329.6 million).
UK food and drink exports to Ireland were valued at £4.2 billion in 2024, up 3.4%, with milk and cream classed as the top commodity (£374.5 million), followed by soft drinks (£313.2 million), and chocolate (£264.7 million).
While Ireland and France continue to be the UK’s primary export markets, the USA, which took the third spot, experienced a surge in demand for UK exports last year – up 11.8% compared to 2023, the report documented.
Additionally, further promotion of the new free trade agreement between the UK and Australia, two years after it came into effect, resulted in the value of UK exports to the country rising by 9.1% to £429.5m, the report indicated.
Turkey was also classed in the report as “a major export market opportunity”, as UK food and drink exports to the country grew by 23.4% in 2024.
The FDF stated that the UK should continue to harness trade opportunities with the 12 countries that comprise the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, in a bid to bridge the gap between UK food and drink imports and exports.
It also advised the UK government to negotiate an ambitious trade agreement with the Gulf Cooperation Council (GCC) which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, to drive growth within these emerging markets.
