UK food and soft drink exports were flat in 2012 after shipments fell in the final quarter of the year.

The economic problems in the eurozone, lower demand for UK commodities and slowing growth outside the EU weighed on exports, which were up year-on-year to September.

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According to data released today (18 March) by industry association The Food and Drink Federation (FDF), the value of the UK’s food and non-alcoholic drink exports was GBP12.1bn (US$18.27bn) in 2012 – the same level as 2011. In the last three months of 2012, exports dropped 5%.

The FDF cited falling GDP in the eurozone in the fourth quarter as a factor in the results. It also pointed to the “significant” strengthening of sterling against the euro in 2012.

The wet summer in the UK also affected food exports. The FDF said a “poor” UK harvest in the autumn hit grain exports. The value of cereal exports in the fourth quarter dropped GBP160m compared to the last three months of 2011.

There were positives in the data. Exports of value-added foods were up 3.7%, with growth inside and outside the EU. Chocolate exports, the largest sector by value, increased 19.3% in 2012. Sauces and condiments sales were up 8.9%, cakes by 7.9%.

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Looking at the market data, sales to Ireland, the largest market for UK food and soft drink exports, rose 1.7% to GBP2.98bn. Ireland is worth double the next market, France, where sales slumped 8.2%.

None of the BRIC countries were in the top 20 markets for UK food and soft drink exports in 2012.

The picture was mixed. Shipments to Brazil and China increased. Sales to Brazil were up 1.7% at GBP17m. Exports to China rose 11% at GBP110m. However, sales in India and Russia were down. Exports to India fell 5.3% to GBP19m. Shipments to Russia, which was among the 20 largest markets for UK exports in 2011, fell 12.6% to GBP92m.

Click here for exclusive comments from UK food minister David Heath on the industry’s exports.

Click here for more detail on the export figures by market.

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