‘Disaster’ looms as EU food exports halved

FOOD and drink exports to the European Union almost halved in the first quarter of this year in the wake of the official Brexit.

The 47 per cent decrease in UK exports to our nearest neighbours detailed by the Food and Drink Federation is a frightening figure and projections on this scale are surely unthinkable.

For the first time in the FDF’S reporting, exports to non-eu markets exceeded those to the EU, making up 55% of all UK food and drink exports. Exports to the Republic of Ireland were down 71%.

In cash terms UK exports to the EU dropped £2 billion. “A disaster,” said Dominic Goudie, of the FDF, who added that when the trade association that represents food and drink producers looked at the data from last year, the pandemic accounted for a 10-15% drop in EU exports, leaving “a very significant volume of the lost exports” down to the new trade agreement and the logistical difficulties it has created.

Worst hit are seafood, dairy and meat, and direct reports from the industry say much of what was dismissed as teething problems six months ago is in danger of becoming standard practice.

All of the UK’S top 10 products exported to the EU fell considerably in value from 2019 to 2021, with whisky dropping 32.3%, chocolate 36.9% and lamb and mutton 14.3%.

John Whitehead, of the Food & Drink Exporters Association, said “significant business” has been lost.

“Experienced FDEA members are continuing to battle against inconsistent interpretations of regulations across the EU and having to weigh up whether the time and cost involved is sustainable,” he said.

A growing and significant concern also is the shortage of drivers that the Road Haulage Association raised with UK Government ministers this week, with the inevitable outcome of an impact on consumers one way or the other if unresolved soon.

The prospect of road haulage – an essential division in the merchant forces fighting the pandemic – facing further restrictions because there are too few drivers adds another very serious front to the battle.

A withering look came from the nation as Prime Minister Boris Johnson made a pitiful attempt at making the miniscule trade deal with our neighbours on the opposite side of the planet sound magnificent.

Business Editor Ian Mcconnell writes in his Called to Account column this week that “obviously, the actual numbers show beyond a shadow of a doubt that the new deal landed with Australia this week will offer tiny benefits relative to what has and will be lost with the departure from the European Union”.

A catamaran being considered as a potential stop-gap addition to the struggling Calmac ferry fleet is undergoing sea trials ahead of the potential deployment, Deputy Business Editor Scott Wright reveals this week.

Slightly better news for those in the islands, although one business leader said the operation “seems to lack any urgency”.

A glass will no doubt be raised in the Grain living room this weekend after the Austrian IT executive became the major shareholder in Ardgowan Distillery, which is looking to revive whisky production in Inverclyde, writes Business Correspondent Kristy Dorsey. Roland Grain has injected £7.2 million into the business, with production expected in 2023.