News article
20 October 2009
Food and drink exports buck the trend
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PRESS RELEASE
Exports of food and non-alcoholic drinks bucked the recessionary trend and were
up 10.2% to £4.82bn in the first six months of the year, according to new
research commissioned by the Food and Drink Federation (FDF)[1]. Exports of all UK goods were down 13.4% over the same period.
If this strong performance is maintained through the second half of 2009, food
and non-alcoholic drinks exports could pass through the £10bn barrier for the
first time. The sector is already on track for its fourth consecutive year of
record export growth.
Star performers in the first half of this year included ice cream (up 55% to
£43.4m); soups (up 37.5% to £17.1m); sauces and condiments (up 28.1% to
£96.4m);
soft drinks (up 22.2% to £151.1m); coffee (up 19.7% to £33m); crisps (up 13.7%
to
£27.3m); breakfast cereals (up 12.5% to £207.3m); and sweet biscuits (up 12.4%
to £95.2m).
Europe remains the standout region for exports, with its share of UK food and
non-alcoholic drinks exports now at 80.8%, fuelled by strong growth in sales to
The Netherlands, France, Italy and Spain.
Melanie Leech, Director General, Food and Drink Federation, says:
"These figures are testimony to the efforts of UK food and drink exporters to
keep building their overseas sales in what are very challenging international
trading conditions. Food and drink is one of the few sectors to have bucked the
trend of falling exports - and that's due, in part, to our strong reputation
for
supplying high quality, innovative products. Our new report on exports is an
important reminder for the Government of the strong economic contribution made
by the
UK's biggest manufacturing sector.
"However, more could be done to help smaller companies maximise their potential
in overseas markets, with issues such as a lack of insurance and longer credit
terms creating real headaches for exporters. One way that the Government could
help is by extending its trade credit insurance scheme beyond the end of this
year
as a way of helping food companies access bank financing, which - because of
the
lack of insurance, has been reducing in recent months.
We are also keen that the Government considers backing an international trade
credit insurance scheme to ensure UK exporters can compete on a level playing
field, given many of their competitors are benefitting from state-provided
insurance
cover."
Notes to Editors:
- Research carried out for the Food and Drink Federation by Leatherhead Food Research - a market leader in supporting the global food and drink sectors, covering all
food related issues from technical analysis and research through to market data
and regulatory guidance.
- To view a copy of the full exports report, visit: UK Export Statistics - first half 2009
- The Food and Drink Federation (FDF) is the voice of the food and drink
manufacturing industry - the UK's largest manufacturing sector.
-
Stories behind the export figures (more case studies are available on
request):
Alara Wholefoods
Alara Wholefoods exports its Into the Garden range, OT Porridge range, Of the
Earth range, Traditional Mueslis and Gluten Free mueslis. The company exports
to
Finland, Singapore, Spain, Sweden, Canada, Greece, Cyprus, Malta, Korea,
Russia,
Australia, Japan, Eire, China, Slovakia and Taiwan. At the ANUGA trade show in
Cologne last week Alara launched a new range called GeoMuesli in partnership
with
Traidcraft. This is the first fair trade range of mueslis in the world.
Bart's Spices
Bart's Spices exports a range of products including herbs, spices and cooking
ingredients. The company's main export markets are Spain, US, Canada, South
Africa
and Barbados. Bart's has worked with UK Trade & Investment in the past which
helped the company to develop its exports to the US.
Burts Chips
Over the last two years Burts Chips has seen a huge jump in sales and a major
driver behind this has been its focus on exports. One third of Burts' turnover
comes from exports and it sells its products in 17 countries, including India
and
Russia.
Devro
Devro, a Scotland-based provider of collagen products, which are transformed
into edible casings for sausages and other related products, exports 30% of its
manufactured products. Its key markets include Europe, the USA and Asia.
Despite
challenging market conditions, Devro have realised higher sales volumes than
this
time last year, especially in export markets. The company expects global demand
for casings to continue to grow driven by economic expansion and increasing
meat
consumption, especially in emerging markets.
Jackson's Bakery
Jackson's Bakery - a producer of specialist sandwich bread for industrial
sandwich makers and retail bread for tourist and ex pat markets - has a real
hands-on
approach to export sales, currently enjoying trade in 25 countries. The company
has achieved over 400% growth in the last 6 years - export is a significant
part
of the business and represents almost 12% of its total sales turnover.
Jackson's
Bakery's export markets currently include France, Germany, Sweden, Denmark,
Cyprus, Greece, Spain including the Balearics and Canaries, Luxembourg,
Portugal,
the USA, Lithuania, Ireland, Poland, Italy, Czech Republic and Hong Kong.
Other Useful Statistics:
Top 10 export markets for food and non-alcoholic drinks Ireland (£1.27bn) France
(£618.7m) Netherlands (£495.8m) Germany (£330.1m) Spain (£270.6m) Italy
(£238.8m) Belgium (£185.4m) United States (£131.1m) Denmark (£83m) Portugal
(£81.3m)
Top five product sectors for exports of food and non-alcoholic drinks Other
prepared foods (including fats and oils, preserved fruit & veg, fruit juice,
soups,
sauces and condiments, ice cream and vinegar)(£1.22bn) Cereals and bakery
(£971.6m) Meat and animal products (£632.9m) Fish and seafood (£527.3m) Dairy
(£383.6m)
More Information
- FDF Press team
-
Keren McCarron on keren.mccarron@fdf.org.uk or 020 7420 7132
-
Sarah Lovell on sarah.lovell@fdf.org.uk or 020 7420 7131
-
Rebecca Wilhelm rebecca.wilhelm@fdf.org.uk or 020 7420 7140
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