U.K.’s Food and Drink export to E.U. fell by 47% in the first quarter of 2021
As per the figures shared by the Food and Drink Federation (FDF) of United Kingdom (U.K.), the exports to European Union (E.U.) dropped by 47% in the first quarter (January-March) of 2021.
FDF is the membership body for the food and drink manufacturing sector. It represents and supports food and drink companies, from sole traders and SMEs to the largest global brands.
According to FDF, the sharp decline in sales is majorly due to the new trading restrictions that have come in place post Brexit. Besides, the pandemic also added to the woes of the industry. 10-15% of the total fall in export is due to COVID-19 restrictions.
When Brexit transition got over on December 31, 2020, the trade across the channel became subject to new post-Brexit regulations and customs formalities for the first time. This affected the trade in products of animal origin and other perishable foods because it led to significant delays while formalities were completed.
A trade that would take 12 hours in the past, now requires a day or even a week. A delay of 2-3 days makes a huge impact on the shelf life of the perishable food product.
Speaking on the occasion, the Head of International Trade, FDF – Dominic Goudie said, “It is a very clear indication of the scale of losses that UK manufacturers face in the longer-term due to new trade barriers with the EU.”
Reacting to the declining figures, a Government Spokesperson said that it’s too early to draw any firm conclusions on the long-term impacts of Brexit
The Co-Founder and Co-Distiller at Sky Wave Gin – Rachel Hicks said, “We are now unable to quickly send gin to our customers all over Europe and have to wait for HMRC to inspect us every time we send gin abroad.”
The Partner at Berwick Shellfish in Northumberland – Graham Flannigan said, “The logistics systems are moving better now but it’s the red tape that is having to be built into the cost of the goods and this is having a knock-on effect.”
While sales to Germany, Spain and Italy also more than halved, the worst hit was trade with Ireland, which went down by more than 70%. The export of cheese went down by 2021 as compared to 2019 when there was no Brexit and no COVID-19. Besides, the sales of fish and chocolate also went down by 52% and 37% respectively.
U.K. has exported more food and drink to the E.U. for decades than the rest of the world combined. However, post Brexit, this changed. The U.K.’s export to non-E.U. nations made up 55% of their total exports. The sales to non-E.U. nations went-up by 0.3% in the first quarter of 2021. Most importantly, there was a significant increase in the exports to China.
