Brexit Food Exports Suffer a 34% Decline Since 2019
The effects of Brexit on the UK’s food and drink industry are increasingly visible, with British exports to the EU plunging by 34% since 2019. Industry leaders are raising alarms about the challenges businesses face under new trade rules, with complexity, bureaucracy, and stringent EU import requirements being cited as key roadblocks. Despite global food exports growing, the UK’s performance in EU markets reveals an uphill struggle.
This explores the factors behind the decline, how Brexit has reshaped food and drink exports, and what industry experts are recommending to address the barriers affecting UK businesses.
UK Food Exports to the EU Decline by Over A Third
A report from the Food and Drink Federation (FDF) highlights that UK food and drink exports to the EU collapsed to 6.37bn kg in 2024—a sharp 34% drop compared to 2019 levels. The figures paint a stark picture of how post-Brexit trading arrangements have reshaped the relationship between the UK and its most crucial trading partner.
While signature British exports like whisky, chocolate, and cheese continue to perform well, the overall export reduction cannot be overlooked. The EU, accounting for nearly two-thirds of UK food and drink exports in 2024, remains the lifeblood of the sector. However, post-Brexit realities appear to have created substantial hurdles for both large enterprises and small and medium-sized exporters alike.
The Impact of Bureaucracy on Trade
The FDF attributes much of the decline in exports to the added complexity and bureaucracy brought by Brexit. For example, UK businesses now face stricter EU import requirements, making it costly and time-intensive to comply with the necessary checks and paperwork. Small and medium-sized enterprises (SMEs) are particularly struggling under this added weight, with fewer resources to tackle these demands compared to larger firms.
Balwinder Dhoot, FDF’s director of industry growth and sustainability, stated, “These latest figures show the stark reality for the UK’s 12,500 food and drink businesses who are struggling to deal with the complexity and bureaucracy that comes when trading with Europe.”
Brexit’s Broader Consequences for Food and Drink Imports
While UK exports to the EU are facing challenges, the volume of food and drink imports into the UK has surged. Imports from the EU increased by 3.3% in 2024 compared to the previous year, and imports from non-EU nations rose by 7.4%. Total UK food and drink imports now stand at a record £63.1bn.
Interestingly, this rise in imports comes despite the UK introducing new border checks on animal and plant products arriving from the EU in April 2024. Unlike UK exports, imports entering the UK face fewer checks, creating a disparity that has frustrated British exporters.
British farmers have also reported challenges linked to increased competition from imported goods, coupled with factors like rising costs, bad weather, and tax changes, resulting in a “cashflow crisis” for numerous producers.
Global Trade Presents Opportunities but Adds Complexity
The UK is seeing moderate growth in trade with other markets, as evidenced by food exports to global destinations increasing by nearly 6% in 2024. Notable success stories include the UK-Australia trade agreement, which led to a 9% rise in exports to the Australian market, valued at £429.5m.
Additionally, the US became the UK’s third-largest export market for food and drink in 2024, following Ireland and France. Products such as tea and biscuits have gained popularity across the Atlantic, bolstered by British cultural appeal.
However, tariffs and the lack of formal trade agreements remain points of uncertainty. For example, former US President Donald Trump’s threats of a 200% tariff on European wines highlight the volatility facing exporters globally, underscoring the importance of securing favourable trade conditions.
The Need for Strategic Trade Relations
The FDF has strongly recommended a more strategic approach to trade with Europe to address these challenges. Industry experts suggest that government action is critical for removing “unnecessary barriers” to trade. This includes working closely with EU leaders and aligning more of the trade processes to ensure UK exporters can stay competitive within European markets.
The FDF’s proposals extend to regulatory harmonisation and simplifying import-export procedures, particularly for SMEs that are disproportionately affected. Beyond boosting trade, this approach could stabilise a sector facing considerable uncertainty.
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