British food exports rise for first time in six years

After six years of suffering from the fall out from food scares such as BSE and foot-and-mouth disease, British food exports rose 4.4 per cent last year to £8.9 billion (€7.8bn), a level last seen in 1998.

According to Food from Britain​ (FFB). the export marketing consultancy which released the figures, the positive news comes as welcome relief to the UK's food and drink exporters, who have been hampered over recent years by restrictions and economic pressures in key export markets.

The pound's increased competitiveness against the euro is also beginning to contribute to increased exports in the key euro-zone markets, FFB said, with the result that food and drink sales to European markets have shown the biggest gains over the last 12 months, rising 8 per cent.

Ireland was the biggest market in Europe - and indeed the world - for British food and drink products, with sales rising 9 per cent to £1.4 billion. Exports to France - the second largest market - were up for the first time in seven years, rising 5 per cent to £1.04 billion. Spain, the fourth largest market overall, was also the only country in Europe to register a decline - a drop in whisky sales there led to 5 per cent drop to £684 million.

Germany, the number five market, posted gains of 14 per cent to £609 million, while the Netherlands also saw double digit growth with exports rising 22 per cent to £508 million. Italy and Belgium, the seventh and eighth markets for British food, saw slightly more modest gains of 2 per cent and 7 per cent to £317 million and £303 million respectively.

The US, Britain's third largest market and biggest outside Europe, saw sales rise 2 per cent to £817 million, contributing to a 7 per cent increase in sales to North America. Eastern Europe registered a 12 per cent increase.

However, losses were experienced in Asia (down 4 per cent overall) where a 16 per cent rise in South Korea (the ninth largest market) was offset by a 16 per cent decline in Japan (the tenth biggest market). South American sales also declined (by 16 per cent), in turn leading to an overall drop in exports to non-EU countries of 1 per cent.

Added value products continue to drive British food and drink exports, according to Food from Britain. Valued at £5.6 billion and accounting for 63 per cent of total exports in 2002, they have been steadily on the increase since 2000. These products have higher margins and are less affected by fluctuating world commodity markets, FFB said.

As in previous years, the drinks industry has led the way in export markets, with alcohol sales up £111.5 million during the year. Beer sales, particularly to the US, were strong, while whisky exports are also developing again to many EU and non-EU markets after a few difficult years. With the lifting of restrictions, meat exports have also grown, with the total sector up 18 per cent despite continued difficult trading conditions.

Successes also continue to be scored in the ethnic and convenience sectors, where British manufacturers are renowned for their expertise in innovation, quality and manufacturing techniques. Other added value areas also showing increases include breakfast cereals (6 per cent), tea (4 per cent) and cheese (2 per cent ).

"These latest results are the most encouraging figures we have seen for the last six years,"​ said Simon Waring, international management director for Food from Britain. "We first started to track the beginnings of a recovery in food and drink exports in 2001, but the FMD restrictions masked the positive gains made in many areas resulting in a further decline last year. With these now lifted, we can see the positive strides made by our exporters in key markets and product sectors.​

"Indications for trading in early 2003 show that this upward trend is set to continue and we believe that there is room for significant growth in EU markets over the coming 12 months,"​ Waring concluded.