Welcome to UsFoods.com - Information on Us food imports and exports

For the second year in succession, exports of food and drink products from the UK have declined, falling 5% to 8.8bn [pounds sterling] (??15.2bn). However, according to Food from Britain, the marketing constancy firm, this figure is better than had been expected and could mark the beginning of a recovery in foreign sales of some of Britain's leading products.

The figures reflect tough market conditions, with the continued strength of sterling against the euro, retail price competition, manufacturing overcapacity in some sectors and the now abandoned (mostly) restrictions on beef exports all taking their toll.

EU EXPORTS WORST AFFECTED

Exports to the rest of the EU, which account for 63% of the total, were the worst affected during the year, FFB said, dropping 6% compared to 1998. Sales outside the EU fared better, dropping only 3% year-on-year as the recession in many Asian economies which so badly impacted sales in 1998 comes to an end. In fact, Asian exports grew by 9% in the last quarter of 1999, the culmination of six months of steady increases in sales, but still have some way to go to recover from the 18% slide registered in 1998.

US, ASIAN GROWTH

Many markets bucked the overall downward trend and reported increased imports of UK food and drink products - 80 markets worldwide showed an increase on 1998, FFB said. With an 8% increase in purchases, Ireland has now overtaken France (down 6%) as the largest market for British food and drink. Sweden and Finland both showed increases (+ 1% and 3% respectively), while the US increased its imports by 10%. The most dramatic recoveries were in Asia, with exports up 14% for the region as a whole.

PROCESSED PRODUCTS PREFERRED

Processed products proved more popular than commodities on overseas markets, FFB said, with soft drink exports ahead 30%, fruit juices up 14%, prepared vegetables ahead 8%, cheese 7%, general groceries 6% and fish 3%. The lifting of the beef ban in key markets helped meat sector sales rise 57% to 18.4m [pounds sterling].

PRESSURE TO CONTINUE

David McNair, CEO of FFB, said: "The 5% drop was certainly better than predictions earlier in the year and the recovery in the last quarter in many of our key worldwide markets gives some hope for further improvements in the next twelve months. However, trading will continue to be tough, especially as sterling shows no sign of weakening relative to the euro, and there is real pressure on prices and margins."