A study from the Food & Drink Federation (FDF) found that in Q1 2020, food and drink exports fell to £5.1bn (-12.7%) compared to Q1 2019, when exports raised £5.8.
Food and drink exports continued to grow from £22bn at the end of 2018 to £23.6bn by the end of 2019 and was set to increase even more in 2020 as a result of the hard work of the Food and Drink Sector Council (FDSC) which started in 2018 and aimed to boost productivity.
Evidence has shown that the decrease is largely down to the impacts of the coronavirus pandemic which meant many businesses within the travel and hospitality industry were forced to close. This led to a decrease in sales in hotels, cafes, restaurants and bars.
Despite the hit to bars and restaurants, whisky still remains the most popular product, bringing in £943.6m in Q1.
Since 2019, the value of whisky has decreased by £196.3m and most other popular products have also lost significant value apart from pork, which increased by £27.8m (22.8%).
The top 5 export destinations in Q1 are:
- Ireland £942.2m (-8.7%)
- USA £498.1m (-4.8%)
- France £450.2m (-24.1%)
- Netherlands £362.5m (-24.5%)
- Germany £325.5m (-21.3%)
Although exports to the majority of destinations have declined, demand in markets from Singapore (+17.8%), Canada (+11.3%) and Norway (+31.8%) has risen.
The results of Q2 are expected to be even lower as the impacts of COVID-19 increased. The Food and Drink Sector Council have released a publication on their plans for recovery.
Ian Wright, industry co-chair of the FDSC and Chief Executive of the FDF, said:
“Throughout the pandemic, the hidden heroes operating across the farm-to-fork supply chain have kept the country fed in the most difficult of circumstances.
Collaboration has been a key theme during this time, and we must take our shared learnings forward as we look to support all parts of the supply chain with their recovery.
The FDSC’s recovery report is a clear and comprehensive plan that ensures we can do just that, while helping to build a sustainable food system for the future.”
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