Exports at £10bn peak as whisky sales grow

FOREIGN demand for whisky and salmon have helped British food and drink exports soar to a record £10.2billion.

The Scots contribution to the economy has come at a vital time as the slump in the value of the pound has caused the sector’s trade deficit to balloon.

The Food & Drink Federation (FDF) said Brexit-hit sterling has ramped up the price of imported ingredients and materials, causing the gap to grow by 16 per cent to minus £12.4billion in the first half of the year. But an overseas appetite for whisky and salmon as well as beer has helped to lift food and drink exports 8.5 per cent.

David Williamson, of the Scotch Whisky Association, said: ‘As our biggest export by value, Scotch whisky continues to be a trailblazer for British food and drink, supporting jobs and investment across communities in Scotland and our wider UK supply chain.’

Though the weakness of the pound has brought increased costs for food producers, it has also helped to drive international demand by making products cheaper overseas.

FDF director general Ian Wright said the low level of sterling was a concern, but the expansion in the exports of food and alcoholic drinks was encouraging.

‘It is great to see such strong growth in our exports to EU member states,’ he said. ‘The EU remains an essential market for UK exports as well as for supplies of key ingredients and raw materials used by our industry.

‘We believe there are significant opportunities to grow our sector’s exports further still.’

Mr Wright added: ‘The continuing weakness of sterling is a concern.

‘However, we hope that with the determination of businesses and the assistance of government, we can open more channels and provide a further boost to the UK’s competitiveness on the world market.’

The greatest export demand came from the European Union, boosting its share of sales to 61.2 per cent.

Britain’s top three export markets were Ireland, France and the United States, the report said.

France has developed a growing taste for Scotland’s national drink, with whisky exports there leaping by more than 50 per cent between 2007 and 2015.

Food Minister George Eustice said: ‘These encouraging figures show that the UK’s high-quality foods and high standards are sought after around the world.

‘Last week we announced further market access to China for pork producers and UK beef will soon be heading to the Philippines. We will continue to work with industry to open new opportunities.’

Food sales remain a bright spot for UK retailers on home soil after inflation raced ahead of wage growth in response to the fall in the pound.

Retail sales growth came in ahead of expectations for July at 0.3 per cent, with food sales picking up to 1.5 per cent as all other areas, except household goods, recorded falls.

‘Significant opportunities’