UK F&B exports to the EU were down more than a fifth in February, linked to a fall in sales of 40.9 percent compared to the same period of the previous year, according to a new Food and Drink Federation (FDF) report. 

“While UK food and drink exports to the EU have improved from a 76 percent fall in January, they are still down nearly 41 percent in February 2021. Exports to our biggest market, Ireland, have also dropped more than two thirds,” says Dominic Goudie, head of international trade at FDF.

“UK businesses continue to struggle with inconsistent and incorrect demands at EU borders, and small businesses have been hardest hit due to the collapse of groupage distribution into the EU.”

These trading statistics were presented in the FDF’s second Food and Drink Trade snapshot this year, following the publication of Office for National Statistics (ONS) trade data earlier this month for February 2021.

“New EU import requirements for composite products entered into force this week, adding even greater complexity, cost and uncertainty for UK exporters,” remarks Goudie.

“It is essential that the EU-UK Partnership Council and its Trade Specialised Committees are convened to urgently address problems with the implementation of the EU-UK Trade and Cooperation Agreement to ensure small businesses are not shut out of trade by this trade deal.”

UK export climate highlights
In the first few months of 2021, Britain’s exports to the EU were down more than £1.1 billion (US$1.5 billion), impacting sales to most EU Member States.

In the first few months of 2021, Britain’s exports to the EU were down more than £1.1 billion (US$1.5 billion), impacting sales to most EU Member States.

The dairy and meat sectors were worst impacted, with sales of milk and cream to the EU down 96 percent, and chicken and beef down by more than three quarters. 

The fall in imports in February 2021 was driven by a dro of 17 percent from the EU compared to February 2020. At the same time, imports from the rest of the world increased by nearly 6 percent.

imports fell from each of the UK’s top six suppliers in February 2021, with these countries supplying around half of the UK’s imported food and drink.

Meanwhile, imports of pork, chicken and beef were down more than 30 percent compared to February 2020. Fruit and vegetables were down by 21 percent and 13 percent respectively.

The new report comes at the heels of a previous FDF analysis that revealed F&B exports in the first half of 2020 fell for the first time since 2015.

Forging ahead
As the UK embarks on its new path as an independent trading nation following the end of the Brexit transition period, significant growth opportunities remain for UK food and drink exporters, both in the EU and further afield.

The FDF advocates initiatives by the UK government to help exporters facing both pandemic and Brexit headwinds, including the creation of four Trade and Investment Hubs by the Department of International Trade (DIT).

Significant growth markets detailed in the report include the US, Canada, Australia and New Zealand. The FDF has also previously hailed increasing export sales to China and UAE as a “golden opportunity.”

The UK’s application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the third-largest free-trade bloc in the world by GDP, will also present new opportunities for food and drink exporters if it is approved.

Last month, the UK delayed its post-Brexit border checks on certain EU goods by six months to give businesses more time to prepare for the full impact of the transition.