FDF urges action as Brexit bureaucracy strangles UK food exports by a third

The UK’s food and drink export sector is grappling with severe setbacks five years after Brexit, with figures showing a dramatic decline in trade with the EU.

According to the Food and Drink Federation’s 2024 Trade Snapshot, food export volumes to the EU have plummeted by 34.1 percent since 2019, while imports from the bloc surged by 3.3 percent, reaching a record £63.1 billion last year.

This stark contrast underscores the growing challenges faced by UK exporters, especially small and medium-sized enterprises (SMEs), as they navigate post-Brexit trade barriers.

Post-Brexit bureaucracy

The FDF’s report reveals that, between 2020 and 2024, the UK’s global food export volumes were nearly 20 percent lower than during the pre-Brexit period (2015-2019), a trend that is largely attributed to the new bureaucratic hurdles brought on by the UK’s departure from the EU.

Popular exports such as whisky, chocolate and cheese continue to attract European buyers, but overall, food export volumes to the EU dropped to 6.37 billion kilograms in 2024, marking a sharp 34 percent decline compared to 2019.

Balwinder Dhoot, Director of Industry Growth and Sustainability at the FDF, said:

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.”

While global disruptions like COVID-19 and the ongoing war in Ukraine have played a role in disrupting international trade, the situation is markedly different for other European countries. Germany, the Netherlands and Italy have all seen food export growth since 2020, indicating that the UK’s challenges are not part of a wider global trend but are directly tied to Brexit-related trade barriers.

Getting “the right fit for the UK”

The FDF is urging the UK government to address these trade barriers through a balanced SPS agreement, which could help reduce friction and facilitate smoother trade. The federation is also calling for reforms to simplify the maze of paperwork and lower border fees, which continue to burden UK businesses.

Dhoot added:

Government must prioritise working with the EU, and our industry, to remove as many of these barriers as possible. It’s important that we don’t just get a quick fix, but the right fit for the UK when it comes to our relationship with the EU. We stand ready to work with government to develop a trade deal that will drive growth in our sector.”

Despite these setbacks, the EU remains the UK’s largest food and drink trading partner, accounting for 61.8 percent of exports and 75.6 percent of imports in 2024. However, the UK is seeing more positive signs in markets beyond Europe. Food exports to non-EU countries grew by 5.7 percent in 2024, with trade deals such as those with Australia boosting export values. Sales to Australia rose by 9.1 percent, reaching £429.5 million, while the US, its third-largest export market, saw growth of 11.8 percent in 2024.

Monitoring the EU/US trade dispute

The FDF will likely be closely monitoring the evolving situation between the EU and the US, particularly with regard to tariffs. On Thursday, President Trump escalated tensions by threatening a 200 percent tariff on EU wine and champagne in retaliation for the EU’s proposed 50 percent tax on American whiskey.

The FDF notes that any future UK-US trade deal that could pre-empt such tariffs may help shield vulnerable sectors within the UK food and drink industry, though the full impact of potential tariff policies remains uncertain.