UK food and drink exports at record highs

Favourable exchange rates have helped boost UK exports of food and non-alcoholic drinks, which have hit record levels according to the latest data.

Research commissioned by the Food and Drink Federation (FDF) has revealed that exports were worth £9.23bn in 2008, up 20% in value terms on 2007. When alcoholic beverages - notably Scotch whisky - are included, exports hit £13.6bn.
Star performers included biscuits (up 15.3%); breakfast cereals (up 12.5%); cakes (up 12%); cheese (up 16.7%); chocolate (up 10.9%); sauces and condiments (up 21%); soft drinks (up 30.7%); and tea (up 14.3%). Together, exports of these added value products were worth almost £1.9bn.
The overall performance was also boosted by a buoyant red meat sector, recovering after the lifting of foot and mouth restrictions; strong exports of commodity cereals; and another strong year for fish and seafood companies, which recorded overseas sales of £1bn, despite tough market conditions.
Central Europe proved a particularly strong market for exports, with growth fuelled by the demand for a wide range of UK food and drink products in the former Eastern Bloc countries. Exports to Hungary were up 74.3% to £40.2M; exports to Poland were up 53.6% to £116.4M; those to Latvia were up 51% to £8.6M; to Slovakia up 45.2% to £11.5M; and to Lithuania up 32.7% to £9.7M.
These results support the data given in the latest Food Manufacture​ market report​ outlining opportunities in Eastern Europe, which highlighted the growing market opportunities there for manufacturers as lifestyles and relative affluence continue to improve, According to research, prepared for Food Manufacture​ by market research specialist RTS, this will lead to the value of the food and drink market rising slightly faster than volumes over the next five years in Eastern Europe. This is expected to be of particular advantage to companies that already have added-value products and technologies that may be relevant to Eastern European markets.
Regarding the latest export figures, Melanie Leech, FDF director general, said: “Amid all the economic gloom, this is a genuine good news story. UK food and drink manufacturers have built a strong international reputation for quality and innovation over many years - and it’s clear that our sector continues to perform strongly on the export stage, despite challenging global circumstances.”
Report author, Chris Brockman, market research manager of Leatherhead Food International, said: “These figures represent yet another impressive performance from the UK food and drink exporting community. Exchange rates have clearly swung in the favour of UK exporters, but the weakening of global markets means that competing on the international stage remains a challenge. The rebounding red meat sector has boosted overall performance, with UK lamb and beef exports together now back up to a level of nearly half a billion pounds, while the markets of Central and Eastern Europe represent some of the fastest growing opportunities for British products.”