Food exporters are benefiting from the sliding value of the pound, according to Food from Britain (FFB), the organisation which works with UK food and drink manufacturers to find new markets overseas.
As the value of the pound fell against the dollar to its lowest level for five years, FFB announced that exports were growing. “Favourable exchange rates are contributing to the continued growth of UK exports,” said FFB’s Lizzy Hawkins.
However, even before the recent dramatic fall in value of the pound had improved the attraction of UK food and drink to overseas buyers, exports had been rising. In the first quarter of 2008 exports were up 13.2% on last year to £2,892M, said FFB. And exports to non-EU countries were up 6% to £862.7M.
“British innovation has tremendous kudos around the world,” remarked Hawkins. “For example, there is a growing interest for quirky British products, such as Salty Dog crisps, Honeybuns organic cakes and Dr Stuart’s tea.”
Flavour and ingredients company Tastetech is another supplier reporting increased overseas business. “The exchange rate is making exporting favourable at the moment, and that’s definitely something that we are factoring in to our business plans,” said md Janis Sinton.
But, on the flip side, the poor exchange rate is causing increased hardship for importers of ingredients and capital equipment, which tends to be priced in US dollars. The Authentic Food Company, for example, sources ingredients from all over the world to make its ethnic meals. Commercial director Andy Underwood said the falling value of the pound was an additional burden on the company, which required it to implement strategies to protect against.