Food and drink exports volumes fell by 11.7% in the first half of 2026 – their third lowest level on record, according to figures from the Food and Drink Federation (FDF).
At 4 billion kg, food exports volumes were only just above levels seen at the height of the pandemic and in the wake of the 2001 foot-and-mouth outbreak.
Meanwhile, imports volumes reached an eyewatering 19.1 billion kg despite global conflict disrupting trade flows, pushing the UK’s food and drink trade deficit to £21.1 billion.
The FDF says these figures reflect a “concerning trend” in the UK F&B sector’s waning global foothold.
While the trade body says it recognises imports play an important role in UK food and drink production, it warns that a continuing widening of the deficit risks undermining UK food security.
Why are UK producers losing ground?
Exports to the EU have continued to fall, dropping 0.9% in value. This includes a decline in the UK’s top two export markets, Ireland (-4.9%) and France (-4.6%), driven by additional costs, administrative complexity, and inconsistent rules across member states.
There has also been a downturn in non-EU exports, which dropped 6.9% in value terms. Declining food and drink exports to the Middle East due to ongoing conflict have contributed to this, with exports to UAE falling by 23.4%.
Tariffs imposed by the US have also hit the UK, with exports to the country down 16.5%. This is likely to worsen with the latest round of US tariffs giving EU producers a more advantageous position than UK businesses.
At the same time, the volume of non-EU imports to the UK were up 22% compared to H1 2025, following eased controls on imports to the UK from the rest of the world. The FDF argues that the suspension of UK tariffs on a range of manufactured foods this year has improved competitors’ access to the UK market, while weakening domestic players.
High energy and regulatory costs, as well as policy ambiguity are also making the UK a less attractive place to invest, with funds being diverted overseas instead.
CBI estimates that taxes and packaging regulations on food and drink producers stood at £10 billion in 2025 – the equivalent to 23.8% of the sector’s GVA.
Together, these pressures are driving up the UK’s reliance on imports for finished products during a time of significant geopolitical instability.
UK industry calls for action
The FDF is now calling on the government to shift its focus onto addressing the competitiveness and concerns of UK manufacturers, rather than making it easier for international businesses to sell their goods here.
As part of this, it urges government to reduce tariffs on key ingredients used by food and drink manufacturers, rather than packaged products, which it says will bring costs down and help make the UK more competitive at home and abroad.
Amid discussions with the EU about its future trade relationship, the trade body also underscores the importance of giving UK manufacturers adequate time to adapt to any changes a new deal may bring.
“Our food and drink trade deficit is growing and is now the largest it’s been in over 25 years. In a world beset by conflict and the ever-increasing impacts of climate change, this poses some stark questions about our food security,” said Karen Betts, chief executive at The Food and Drink Federation (FDF).
“The pressures on manufacturers are significant and growing, with the cost of everything they need to make food going up, from energy and ingredients, to logistics, packaging and labour. Constantly changing regulation and high compliance costs are adding to this and making UK businesses uncompetitive both here and abroad.
“When the government then chooses to remove tariffs on, for example, biscuits imported from China, it’s not surprising that they’ll be sold more cheaply here than biscuits made in the UK using British ingredients. But this is putting British products and British jobs at risk.
“As we head to Liverpool this weekend, we’re calling on Andy Burnham and his government to act on this stark evidence, working in partnership with the food industry, to ensure food producers – from farmers to the manufacturers who buy from them – can run viable businesses in postcodes right across the UK.”
Tom Bradshaw, President, NFU, added: “These figures should be a wake-up call. At a time of growing geopolitical uncertainty, we cannot afford to take our food production capacity for granted.
“The pressures facing farm businesses are immense, from rising costs and regulatory burdens to extreme weather and global market volatility. If government is serious about food security, economic growth and national resilience, it must create the conditions that give businesses the confidence to invest, innovate and grow.
“A strong food manufacturing sector depends on a strong farming sector. This widening food trade deficit underlines the need for a clear, long-term plan that backs British production and recognises a simple truth that food security is national security.”
