The amount of food and drink exports in 2016 jumped by 10.5% to a record figure of more than £20bn (US$24.8) billion) as UK manufacturers responded to rapid growth in demand for quality produce, the Food and Drink Federation has said.

“British food and drink exports have hit a record high yet there is still massive untapped potential. More specialist support for new and existing exporters, with fiscal incentives and financial assistance, would get more of the country’s 6,500+ food and drink producers exporting. Our target is to grow branded exports by a third by 2020 to more than £6bn,” said Ian Wright, Director General, FDF.
 
“Competing nations such as France, Germany and Italy offer greater support for training, help with start-up costs and showcasing opportunities at international trade show platforms to build their band of exporters. Building on the International Action Plan, we are working with Government and the Food & Drink Exporters Association to help businesses in this sector compete abroad and meet rising demand for British produce.”

Leading the pack was the export of branded food and non-alcoholic drink with growth of 11.5% to £5.2bn (US$6.4 billion) last year which is the 16th year of consecutive growth.

Britain’s top three exports are chocolate, salmon and cheese (excluding alcohol). Exports of salmon were up 16.4%, driven by large increases to France up 32.2%, Ireland up 24.6% and Germany up 98.9%.

In terms of the biggest export markets, the US is the second largest export market out of Europe wher exports went up 13% to £2.2bn (US$2.7 billion) in 2016. 

The UK’s two largest export markets, Ireland and the USA together buy more than a quarter of all UK food and drink exports. Sales to non-EU markets continued to grow at a faster rate than to the EU, however 71.4% of food and drink excluding alcohol was sold to EU Member States.

China was the fastest growing market, up 51.1% on 2015 to £439.5million (US$546 million). Highlighted as a priority export market in the joint Government-Industry International Action Plan for Food and Drink, China’s appetite for branded UK food and non-alcoholic drink has also risen by 50% in 2016 to £84.7m (US$105 million).

Obviously the weaker pound has led to a more competitive UK export market and this is being cited as one of the reasons behind the boost, but in contrast imports of essential items have significantly increased over the period wher sterling has been weak. 
 
The UK’s food and drink trade deficit grew 5.7% to - £22.4bn (US$ 27.8 billion). 

The true extent of the weaker pound and the impact will be clearer in H1 2017 as companies negotiate new sales agreements with overseas buyers.
 
“We are pleased to see that the 2016 export figures reflect the positive experiences that the food and drink exporting community continues to share with us,” said Elsa Fairbanks, Director at FDEA.
 
“Hopefully even more UK food and drink producers will be inspired to look beyond their home market and take advantage of the huge interest in quality UK food and drink produces and the improved competitiveness of sterling.”