How UK Food And Drink Exports To EU And Non-eu Countries Have Evolved Over Time
Until January 2021, the European Union (EU) was the most important destination for UK food and live animal exports, but Brexit has marked a dramatic trend reversal. According to the Office for National Statistics (ONS), in the first quarter of 2021, the UK’s exports to the EU decreased by 44 % (compared to an 18 % fall of non-EU countries) due to Brexit and the COVID-19 pandemic. The LSE Business Review’s report also analyzed the evolution of the exports of food and beverages from the UK from 1997 to 2021. During this time period, the EU was the main destination for food and live animal exports from the UK, accounting for up to four times the value of exports to non-EU countries. Food trade in both EU and non-EU countries increased steadily until January 2021. On the other hand, exports of beverages, particularly scotch whiskey, to non-EU countries increased roughly twice as much as those to the EU. In particular, meat and meat preparations, dairy production and eggs, fish and shellfish, cereals, vegetables and fruit, coffee, tea and cocoa, and animal feeding stuff were in decline because UK exporters had gradually built these markets under the advantages of the EU single market, under common standards on animal welfare, safety, and labeling. The trends in the first group have far-reaching regional implications as well. Salmon and beef, for example, are major Scottish exports. All of the UK countries export lamb, a food item that is crucial for some communities in Wales and Scotland, with dairy exports being especially important for England. Given the magnitude of exports to the EU, it is not feasible to replace those commodities in the short term with free trade agreements in the food and drink sector. Imports from the EU to the UK fell by 25% during the same time period, with chicken, beef, and pork suffering the most. While post-Brexit trade rules are to blame for much of the slump, changing behaviors during the pandemic and difficulties at the ports may also have played a role. Businesses, especially SMEs, face significant challenges when trading with the EU due to blockings. EU exporters may face similar difficulties when the UK’s new border operating model comes into effect in 2022. Work with EXIMA Today EXIMA is a comprehensive forum made to assist all the players involved in international trade. We provide market research and networking opportunities to supply you with all the necessary trade information.Become a member today! #EXIMA #UKfood #foodexport #drinkexport #EUcountries #nonEUcountries
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