Food and non-alcoholic exports on the rise
The value of branded food and non-alcoholic drink exports has risen to £2.4 billion in the first half of 2016, according to a report from the Food and Drink Federation (FDF).
This is an increase of £141.2 million when compared to the same period in 2015. Branded exports to non-European Union (EU) nations rose by £93.7m from 2015, while exports to the EU also increased by £47.5m. Exports to non-EU nations now represent 31.4% of all branded exports.
A weaker pound at the start of 2016 meant UK exports were competitive in the first half of the year. With the price of the pound falling further since the end of June 2016, following the EU referendum result, it is expected there will be a further rise in exports before the end of the year.
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 £598m, £228.6m and £196.6m respectively.
The top three product categories were chocolate, salmon and wheat, with exports of vegetables, both prepared and fresh, experiencing the largest value growth, up £27.7m in 2016, when compared with 2015.
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.
Ian Wright, director general at FDF, says, “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.”
Elsa Fairbanks, director at Food and Drink Exporters Association (FDEA), adds, “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.”
