Food and drink exports buck trend despite recession

20th October 2009, 9:41am

Despite the current downturn, exports of food and non-alcoholic drinks were up 10.2% to £4.82bn in the first six months of the year, according to new research commissioned by the Food and Drink Federation (FDF).

If this strong performance is maintained through the second half of 2009, food and non-alcoholic drinks exports could pass through the £10bn barrier for the first time. The sector is already on track for its fourth consecutive year of record export growth.

Star performers in the first half of this year included ice cream (up 55% to £43.4m); soups (up 37.5% to £17.1m); sauces and condiments (up 28.1% to £96.4m); soft drinks (up 22.2% to £151.1m); coffee (up 19.7% to £33m); crisps (up 13.7% to £27.3m); breakfast cereals (up 12.5% to £207.3m); and sweet biscuits (up 12.4% to £95.2m).

Melanie Leech, director general, Food and Drink Federation, said that even though these figures are promising, there is still more to be done: "More could be done to help smaller companies maximise their potential in overseas markets, with issues such as a lack of insurance and longer credit terms creating real headaches for exporters.

"One way that the Government could help is by extending its trade credit insurance scheme beyond the end of this year as a way of helping food companies access bank financing, which – because of the lack of insurance, has been reducing in recent months. 

"We are also keen that the Government considers backing an international trade credit insurance scheme to ensure UK exporters can compete on a level playing field, given many of their competitors are benefitting from state-provided insurance cover."

Related Articles:

• 27 Oct 2009 - FDF appoints food safety and science director
• 07 Sep 2009 - More Brits are buying frozen food
• 08 Jul 2009 - No health crunch on product innovation, says FDF
• 11 Jun 2009 - Food and drink exports hit record levels
• 19 May 2009 - FDF appoints nutrition manager
• 07 May 2009 - Healthy routes to profit
• 26 Mar 2009 - FDF hosts 56th sweet conference

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