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Whisky drives ‘record’ Q1 UK food and drink exports
UK exports of food and drink saw record growth in the first quarter of 2017, once again bolstered by whisky – the nation’s most valuable export.
Whisky is the most exported food and drink product from the UK
In Q1 2017, total food and drink exports increased 8.3% to £4.9 billion – the largest Q1 export value on record, according to the Food & Drink Federation.
Whisky remained by far the UK’s most significant export in terms of value, increasing sales by 9.9% to £895.9m. Salmon is the second most exported UK product, while chocolate is the third.
Wine experienced the largest increase in terms of volume exports, up 13.8%. Beer – the fifth most exported product from the UK – increased value exports by 9.5% to £139.3m.
Total export growth to non-EU countries was faster than those to EU countries in Q1 2017. The UK’s top three export destinations were Ireland, France and the US, while Spain registered a 21.6% decrease compared to 2016.
The three export markets that saw the greatest percentage growth in value in Q1 were South Korea (+40.3%), Belgium (+37.3%), and South Africa (+31.2%).
According to the Food & Drink Federation, the devaluation of the pound after the Brexit vote “helped to boost UK export competitiveness”.
However, the currency weakness also led to an increase in the cost of many essential imported ingredients and raw materials, meaning the UK’s food and drink trade deficit increased by 19% to -£6.2bn in Q1 2017.
“The impact of weaker sterling on British exports is expected to be seen in Q3 2017 as companies negotiate new sales agreements with overseas buyers,” the Food & Drink Federation said.
Elsa Fairbanks, director of the Food and Drink Exporters Association (FDEA), added: “We must not ignore the importance of existing and very strong EU markets which still represent 65% of food and drink exports and this must be a priority as Brexit negotiations start.
“Ease of access to EU markets will continue to be vital to our industry in future as many food and drink products are not suited to export to distant markets. Although we recognise the need to explore new opportunities, leaving the EU should not mean ignoring those we already have.”
Earlier this year, the Scotch Whisky Association (SWA) confirmed that Scotch whisky exports had rebounded after three years of decline.