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The
global popularity of British food and drink has hit record heights,
with annual exports on track to exceed £13bn for the first time
in history, according to figures released recently by market
development network Food from Britain (FFB).
The latest six-month figures show
a record breaking mid-year performance, with exports up 15.5% on the
same period in 2007, to reach £6,057.5m. The strength has been
led by phenomenal growth in Central and Eastern Europe, with Russia
(+19.9%), Poland (+53%), Hungary (+58.2%) and the Czech Republic
(+45.5%) all importing significantly more British food than ever before.
The majority of the UK's
established export markets are also experiencing double digit growth,
with The Netherlands - the UK's sixth largest export market - growing
by almost 35%. Exports to Ireland, the UK's largest export market,
experienced 12.4% growth, while exports to France, the UK's second
largest export market, increased by 18.6%.
Chris Brockman, Head of Research
and Consultancy at Food from Britain, said: "These latest
figures are incredibly encouraging in the current climate. UK
producers are finally realising the potential that international
markets have and that successful sales in those places can actually
pay greater dividends than focussing on the domestic market.
He continued: "UK exports
have gone through a sustained period of growth: two years ago it was
incredibly significant that exports exceeded £10bn, as it was
the first time since the BSE restrictions were put in place that the
market had reached this milestone. However, since reaching
£11.5bn in 2007, I predict that at the end of this year exports
will have accelerated to more than £13bn, showing the largest
ever increase by value in a 12 month period since records began."
After a poor performance last
year, exports to the US have picked up again, recording a modest 2.9%
growth in the first six months of 2008. This is predicted to increase
further as the dollar strengthens against the weakening pound.
Exports to the Eurozone have
grown by 16.2% in the first half of 2008, which is only marginally
higher than the overall export growth rate of 15.5%. This indicates
that while the favourable exchange rate with the Euro is assisting UK
exporters, it is the not the sole reason for this success. Outside of
the EU, the Middle East and North Africa recorded the strongest
performance, with UK exports to the region rising by 34.7% to achieve £265.2m.
All major product categories
recorded positive export results. Alcohol continues to be the UK's
biggest export, up 17.5% year-on-year, and dairy exports were
predictably strong with the category as a whole enjoying 18.8%
growth, while UK cheese exports alone grew by 23%. The UK's meat
industry was buoyed by another successful six months of exporting:
beef exports were up 32.3% while lamb experienced a 23.6% increase in sales.
Chris Brockman said: "The
UK economy is fragile at the moment, which although has a negative
impact in many commercial areas, will have a beneficial effect on the
food and drink export market. The UK has completely broken free from
its island mentality and in relation to exports, is now starting to
see the world as a global trading village.
"While I can comfortably
predict that we will exceed £13bn of exports by the end of the
year, it is difficult to make predictions beyond that because of the
incredible strength of the market. The combination of sustained
positive growth in existing markets, significant export interest from
emerging markets and a weakening pound, means that growth rates will
continue to be unprecedented, breaking all records for years to come."
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