Brexit has hit food and drink exports, analysis shows

Brexit has seen a big decline in food and drink exports to the European Union, according to an analysis released by the UK's Food and Drinks Federation (FDF).

Exports to the bloc were down 40.9% in February 2021 from the same period last year, although they have seen an increase from the 76% drop reported in January, shortly after the Brexit transition period ended and the UK formally left the EU.

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The Federation represents over 800 companies in Britain and shows overall statistics were at around £578.7 million compared with over £1 billion in net exports for February 2020.

Milk can cream were hit particularly hard, with the report indicating sales dropped by as much as 96%. Chicken and beef also reported a sales decline of as much as 80% for the same period.

By contrast, food and drink exports to non-EU countries increased by 8.7% over the past year. Food imports from non-EU countries also increased by 5.7% for the same timeframe.

The FDF claims the pandemic has had an effect on exports but pins much of the decline on Brexit bureaucracy, stating the British government must re-enter talks with the EU to resolve the crisis.

The Federation's head of international trade Dominic Goudie also mentioned that exports to Ireland have also declined as a result of the EU withdrawal by roughly two-thirds.

He added: "UK businesses continue to struggle with inconsistent and incorrect demands at EU borders, and small businesses have been hardest hit due to the collapse of groupage distribution into the EU.

“New EU import requirements for composite products entered into force this week, adding even greater complexity, cost and uncertainty for UK exporters.

"It is essential that the EU-UK Partnership Council and its Trade Specialised Committees are convened to urgently address problems with the implementation of the EU-UK Trade and Cooperation Agreement to ensure small businesses are not shut out of trade by this trade deal."

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Earlier today, the European Parliament ratified the post-Brexit trade deal with the UK, though labelled the British decision as a "historic mistake".

It is currently unknown what effects this could have on trade between the two parties, but analysts have described it as a "stumbling block" between their trade relationship.

Further friction between the two powers may also be the result of the ongoing dispute with AstraZeneca about Covid vaccine deliveries, which, earlier this week the European Commission announced it was seeking legal action over.

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