Food and drink exports crashed by more than £600m in the third quarter, as the impact of the Covid pandemic took its toll, The Grocer can reveal this week.
Figures from the FDF show the closure of the out-of-home sector in Europe and the impact on the travel industry saw exports plummet by more than 11% compared with the same period last year.
The federation said the figures highlighted the huge threat to the industry of a no-deal Brexit, with talks in Brussels this week failing to reach a breakthrough.
In the first nine months of the year, exports have fallen by nearly 13% to £15.2bn, with both exports to the EU and non-EU countries hit.
The figures show exports to the majority of the top 20 markets decreasing, with sales to Spain falling by more than a third since the start of the year. Pork and breakfast cereals were the only products within the top 10 to show growth.
Whisky sales suffered the biggest fall in exports to the EU, down by 19% to £901.4m from January to September.
The FDF said the EU remained by far the UK’s most important market, accounting for over 60% of food and drink exports.
Ireland has been the top EU destination for food and drink exports, making up almost 30% of overall sales in the EU across the year, which the FDF said showed how important it was to retain close integration of UK and Irish food and drink supply chains.
Most of the top 10 products exported to Ireland fell in value terms, with cheese and savoury snacks the only categories to show growth.
“The continued decline in exports in the third quarter of 2020 demonstrates the immense dilemma UK food and drink exporters currently face,” said Dominic Goudie, head of international trade at the FDF.
“With less than a month to go until the end of the transition period, businesses are still in the dark about what arrangements will be in place and await urgent clarity from the government.
“As the UK makes its way towards economic recovery, ensuring a quick return to export growth will be essential to strengthen resilience in our industry. It is vital that government and industry partners continue to work closely to ensure food and drink exporters have the specialist support they need.”
Graham Hutcheon, MD, group operations, Edrington and chair of the Food and Drink Sector Council exports working group, added: “Our industry has experienced a substantial drop in exports in 2020, largely due to the impacts of Covid-19 on the global hospitality sector, after a decade or more of continuous growth. With the end of the transition period now just days away, food and drink businesses are facing another massive export challenge.
“More specialist support is urgently needed to ensure our industry comes through these challenges and can fully take advantage of opportunities arising from new UK trade deals.”
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