The UK food and drink trade deficit hit its “highest” level since 2000 in the first half of the year, as exports were dragged down by Middle East tensions and US tariffs.
According to data from industry body The Food and Drink Federation (FDF), export volumes slid 11.7% during the first half to four billion kilograms. The value of the UK’s food and drink exports fell 3.4% to £12bn ($15.88bn).
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Export volumes reached their third-lowest level on record, only “marginally above” the Covid-19 peak and 2001 foot and mouth disease outbreak.
By contrast, imports stood at 19.1 billion kilograms in the opening six months of 2026.
That figure was down 2.5% on the first half of 2025 but represented the “second-highest” level on record, surpassed only by the same period last year, the FDF said.
This expanded the sector’s trade deficit to £21.1bn. The trade group labelled the trajectory “concerning”.
Karen Betts, the CEO of the FDF, cited “constantly changing regulation” and high compliance costs that leave UK producers “uncompetitive both here and abroad”.
She also criticised the tariff suspensions introduced by then-chancellor Rachel Reeves on imports such as biscuits and chocolate. “This is putting British products and British jobs at risk,” Betts said.
Outbound trade with the EU continued its decline, with the value of exports to the bloc falling 0.9%.
Sales to the top two European buyers – Ireland and France – dropped, falling 4.9% and 4.6%, respectively.
The FDF pointed to higher post-Brexit trading costs and complexities alongside “inconsistent” rule enforcement across member states.
Export sales to markets outside the EU dropped 6.9%. The US-Iran constrained trade flows to the Middle East, leading to a 23.4% reduction in exports to the UAE.
Meanwhile, the 10% tariff introduced by the US contributed to a 16.5% decline in the UK’s food and drink sales to the country.
Tom Bradshaw, the president of National Farmers’ Union (NFU), described the data as a “wake-up call”.
“If government is serious about food security, economic growth and national resilience, it must create the conditions that give businesses the confidence to invest, innovate and grow,” Bradshaw said.
