The Food and Drink Federation (FDF) and sustainable energy management specialists Businesswise Solutions created the white paper on the health of the industry.
Campbells Meat, Wensleydale Creamery, Anglesey Sea Salt Company, The Cake Crew and CSM Bakery Solutions were among the companies to take part in a survey and a series of roundtables.
The white paper concluded that seven out of ten businesses felt uncertain about the current state of the industry while 55% believed the UK Government was not supporting the industry enough.
In relation to Covid-19, 60% of businesses surveyed said they ‘suffered a major impact on sales’ during the first six months of 2020 with 85% of companies reporting a knock-on effect on their cash flow and budgets.
Nicki Hunt, membership and commercial director of the Food and Drink Federation said: “It’s been a tough year for food and drink manufacturers, what with the disruption of Covid-19 and the uncertainty we face as we head toward the end of the transition period. But businesses within the sector are adaptable and resilient, and have worked hard to keep the country fed.
"Those companies who supply the hospitality and out of home sectors have been hit particularly hard so we continue to push for further support and guidance to be extended to the wider supply chain.”
Many in the food and drink sector are ‘equally concerned’ about the uncertainty over Brexit, with the transition period after the UK left the EU due to end this year with no sign of a trade deal being agreed.
A total of 65% of those quizzed said they were ‘not feeling confident’ about how Brexit would impact their business.
Julia Wood, managing director at PDM Produce, added: “Realistically, our biggest challenge is Brexit and getting workers from Europe in the same capacity as we could in years gone by.
“We’ll have to adapt and the companies that do, will succeed; and the companies that don’t, won’t - I think that’s the bottom line to be honest.”
The Food and Drink Federation has submitted more than 175 questions to the UK Government, specifically around how food and drink manufacturers should be preparing for the end of the transition period in December 2020.