The Meals and Drink Federation’s commerce report for February makes for regarding studying for the meals business, because the dairy and meat sectors discover themselves hardest hit.

The FDF’s commerce snapshot has revealed some fairly massive decreases in exports

The Meals and Drink Federation (FDF) has launched its UK-EU Meals and Drink Commerce Snapshot for February 2021, with some chastening outcomes for sure sectors.
In accordance with the FDF, whole foods and drinks exports have been down 21.3 p.c, whereas exports to the EU have been down 40.9 p.c on the identical interval final yr. In accordance with the federation, the overall lower in exports to the EU have been down £1.1 billion on February 2020’s figures, as meals producers modify to a brand new means of doing enterprise in a post-Brexit world.
Milk and cream exports have been the toughest hit, with exports to the EU totalling simply £0.9 million in first February 2021, in comparison with 24.2 million on the similar on the similar level final yr (that’s a discount of practically 96.4 p.c). Equally, beef exports to the EU have been down by £26 million, a lower of 77.6 p.c on final yr’s figures.
The truth is, out of the ten hottest merchandise exported to the EU, solely whisky noticed a optimistic change, with a 9.3 p.c development recorded in February 2021 in comparison with he similar interval in 2020.
The truth that exports to the EU have decreased won’t shock many – there was loads of confusion round laws and paperwork within the early levels of 2021 as companies adjusted to life after the UK left the buying and selling bloc. But it can maybe be the size of the deficits that can shock most.
“Whereas UK foods and drinks exports to the EU have improved from a 76 p.c fall in January, they’re nonetheless down practically 41 p.c in February 2021,” mentioned Dominic Goudie, Head of Worldwide Commerce on the FDF.
“Exports to our greatest market, Eire, have additionally dropped greater than two thirds. UK companies proceed to wrestle with inconsistent and incorrect calls for at EU borders, and small companies have been hardest hit as a result of collapse of groupage distribution into the EU.
“New EU import necessities for composite merchandise entered into drive this week, including even better complexity, value and uncertainty for UK exporters. It’s important that the EU-UK Partnership Council and its Commerce Specialised Committees are convened to urgently deal with issues with the implementation of the EU-UK Commerce and Cooperation Settlement to make sure small companies aren’t shut out of commerce by this commerce deal,” he added.