UK exports of food and non-alcoholic drinks bucked the recessionary trend for the first half of the year, up 10.2% on the previous year, according to new figures.
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Research by the Food and Drink Federation (FDF) published today (20 October), showed food and non-alcoholic drinks exports reached GBP4.82bn (US$7.91bn) in 2008. Total exports of all UK goods, however, were down 13.4% over the same period.
Food and non-alcoholic drinks exports could pass through the GBP10bn barrier for the first time if this performance is maintained throughout the year, the FDF said.
Europe remains the standout region for exports, with its share of UK food and non-alcoholic drinks exports now at 80.8%, fuelled by strong growth in sales to the Netherlands, France, Italy and Spain.
“These figures are testimony to the efforts of UK food and drink exporters to keep building their overseas sales in what are very challenging international trading conditions,” said Melanie Leech, director general, FDF.
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By GlobalData“Food and drink is one of the few sectors to have bucked the trend of falling exports – and that’s due, in part, to our strong reputation for supplying high quality, innovative products. Our new report on exports is an important reminder for the Government of the strong economic contribution made by the UK’s biggest manufacturing sector.”
Leech added that more could be done to help smaller companies maximise their potential in overseas markets, with issues such as a lack of insurance and longer credit terms creating real headaches for exporters.
“One way that the Government could help is by extending its trade credit insurance scheme beyond the end of this year as a way of helping food companies access bank financing, which – because of the lack of insurance, has been reducing in recent months. We are also keen that the Government considers backing an international trade credit insurance scheme to ensure UK exporters can compete on a level playing field, given many of their competitors are benefitting from state-provided insurance cover.”
