Food and drink imports are over 13% higher than in 2019, while exports to major markets including the USA, Australia, Canada, Japan and the UAE exceeded pre-pandemic levels.
Canada is a key source of ingredients used by UK manufacturers and saw imports rise 5% while exports to the country saw particularly strong growth, up 26% on pre-pandemic levels. Exports to India are up more than 25% compared to pre-pandemic levels, and they remain a large import partner - particularly for agricultural goods - accounting for £172.5m.
With the UK-Japan trade agreement coming into force in 2021, and others on the horizon including Australia and New Zealand, the FDF expects even further growth in food and drink exports. Both Canada and India are currently in negotiations with the UK Government over ambitious free trade deals and represent major export opportunities.
The Food and Drink Federation’s head of international trade Dominic Goudie said: “Trade plays a key role in boosting the UK economy, with high exports ensuring food and drink companies can thrive and imports offering shoppers in the UK a wide range of quality products at prices they can afford. This is particularly important now, at a time of soaring costs to businesses and consumers, that the UK utilises trade as deflationary weapon.”
One unknown remains the impact of the war in Ukraine, where energy prices rise and supplies of certain key ingredients – including vegetable oils, cereals and white fish – are being strained, all of which are vital for many of our importers.