Diversifying, spreading risk and a broader perspective are all advantages associated with exporting. But for those starting out on their export journey, initial support is a vital element in ultimate success.
It is widely acknowledged that exporting can be extremely valuable to food and drink companies, helping to spread risk and diversify markets, as well as capture increased revenue and build business confidence and acumen.
In fact, a webinar by Grocer sister magazine Food Manufacture last year explored the dangers of not exporting, with UK Food and Drink Exporters Association director Nicola Thomas noting that embracing exports means less vulnerability to the vagaries of the UK market and enables businesses to improve their general competitiveness.
Total UK food and drink exports for last year rose marginally, by 0.6% to £24.9bn in contrast to volume falling by 9.4% compared to 2023, according to the latest HMRC Regional Trade in Goods Statistics figures. However, with challenge comes opportunity – and the potential for businesses keen to export to make their mark.
Since 2019, Welsh food and drink exports have climbed by £243m (43%) to 2023 and were worth £813m in that year alone. While leading export markets for Welsh products are largely EU-centric, top-level UK Government agreements – such as recently joining the Asia-Pacific Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in December last year – could open up new opportunities for exporters, reducing their reliance on EU-based trade, which has met with some challenging times since Brexit.
To this end, the Welsh Government is committed to supporting businesses explore new markets, with East Asia, the Middle East and the US being key targets. A recent delegation of food and drink businesses recently returned from Foodex in Japan, where the likes of Anglesey-based The Lobster Pot were hoping to build on recent successes in the region.
“Attending events such as Foodex gives us an opportunity to show what Welsh produce can offer the world,” says Julie Hill, whose company has been supplying Welsh pot-caught lobster since 1946. “We’re able to give our customers a fantastic product, which is quality, sustainably-sourced shellfish. As experienced exporters to Japan, we’re hopeful that the visit will help build on our current relationships, as well as opening new opportunities in the country, and the rest of Asia.”
Engaging support
Yet, for SMEs to achieve export success, they need support, so with the package currently on offer clearly reaping benefits, businesses in Wales that are keen to export can garner some first-class advice.
Export support from Wales’ government includes detailed guides on a variety of export topics, online training courses and webinars, information and support to attend overseas trade missions, and case studies on Welsh businesses who have achieved export success. In addition, food and drink is among six priority sectors in Wales’ Export Cluster Programme, which provides members with a combination of one-to-many and one-to-one support, designed to enhance their export capacity and performance.
Looking specifically at support tailored to food and drink businesses, there is comprehensive support available through their export programme. This includes everything from assistance in developing export strategies or identifying the most suitable overseas markets, through to advising on the details of any financial and local tax issues, export procedures, regulations, logistics and even insights into the local language requirements and cultures.
Opportunity to meet international buyers
Yet another opportunity to explore the support on offer will come later this year at the biennial Blas Cymru/Taste Wales event, taking place on 22-33 October at the International Convention Centre in Newport. Thirty international attendees from 11 countries were among the 276-strong buyer cohort at the last two-day event in 2023 and attending businesses generated £38m in confirmed and potential sales as a result of the unique ‘speed-dating’ showcase, which aims to maximise sales opportunity in minimal time.
More than 200 new food and drink products will be launched at this year’s event, which also features a unique brokerage system of meetings between suppliers and buyers to maximise trade in a minimal time format.
The event comes as the latest ‘Value of Welshness’ research commissioned by Welsh Government shows that demand within Wales for Welsh produce remains extremely strong, with increasingly positive perceptions outside the country as well.
Companies that have attended previous Blas Cymru/Taste Wales events have spoken highly of their experience and the benefits they gained from doing so. At south Wales-based Terry’s Patisserie, a Great Taste award winner for 10 consecutive years, founder Terry Williams said the company had been recommended to attend by fellow food and drink companies and “the format intrigued us”. He reported “a great mix of businesses in the industry to network with”, including ones the company had been trying to get in front of for years. Plus, he realised the business “had potential outside the domestic market” as a result of attending.
Meanwhile well-known sea salt company Halen Môn notes that the event helps a company to grow, both nationally and internationally, as well as keeping in touch with existing customers. Co-founder Alison Lea-Wilson explains: “From our perspective, Blas Cymru / Taste Wales is as much about building awareness and maintaining relationships as it is about winning any new contracts.
“I am in it for the long haul. It is an opportunity to meet people that could lead to future business.”
Growing the export sector further
Huw Irranca-Davies, Deputy First Minister with responsibility for Climate Change and Rural Affairs, says: “The significant value added to the Welsh economy by our growing exports speaks for itself, and our aim is to build on this further, with a focus on capitalising on opportunities in new markets.
“Whether you are experienced exporters, or just starting out, we’ve worked hard to put in place a range of support packages. So, I would urge you to find out more about how we can help you, as we aim to continue to deliver vital export support for businesses and grow the sector further.”
Visit here for more information on support available for food and drink businesses to export.
