Latest news with #BalwinderDhoot
Yahoo
3 days ago
- Business
- Yahoo
UK food, drink export revenues rose in Q1 but volumes flat
UK food and drink exports rose in value in the first quarter but volumes were flat amid a "continued struggle" to return to pre-pandemic levels. That was the view of the UK's Food and Drink Federation (FDF) as the industry trade body revealed shipments of food and beverages climbed 6.3% to £6bn ($8.1bn) in the opening three months of the year. However, with volumes relatively flat from the year-earlier quarter, the FDF highlighted in its latest Trade Snapshot report that food exports from the UK are 20.4% lower than they were in 2020, while non-alcoholic beverages are down 9.2%. 'Significant growth is needed to return to pre-pandemic levels' in the long term, the FDF said. Export volumes to the EU, the UK's largest trade partner, declined by 3.7% for food and 1.7% for non-alcoholic drinks compared to the first quarter of 2024. An agreement between the UK and EU in May to simplify sanitary and phytosanitary (SPS) controls - yet to be rubber stamped and finalised - could increase UK exports to the bloc by 22.5%, though not until 2027 at the earliest, the industry body said. Balwinder Dhoot, the director of industry growth and sustainability at the FDF, said the SPS talks are a 'positive step towards reversing a concerning decline in exports from the UK' but added that a deal is "far from a silver bullet'. 'It is vital that through these negotiations the UK secures the ability to influence EU regulatory decisions that will impact British businesses,' Dhoot said. Away from the EU, the FDF highlighted the potential "positive impact" for the UK's food and drink producers from recent trade deals with India and the US. The value of UK food and beverages exports to non-EU countries rose by 10.5% in the first three months of 2025 as "food producers take advantage of improved access to growing global markets", according to the FDF. For instance, the FDF said that since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect in December, UK exports of soft drinks to Malaysia have increased by 103% and sweets by 48%. Meanwhile, the trade body said the free-trade agreement with India is likely to benefit UK exporters of soft drinks, biscuits and chocolate in particular. "While there are encouraging signs of an improved global trade outlook ahead, FDF warns that there's more work to be done. It's vital that government continues to build closer trade relationships with trade partners, near and far, and prioritises British competitiveness in ongoing negotiations," it said. UK food and drinks exports to the US increased 23.4% in the first quarter, which the FDF said was probably in anticipation of US tariffs, before an agreement was struck between the two governments in May. However, the FDF added that negotiating the removal of the new 10% tariff should be a priority. Dhoot added: 'This new data demonstrates that there are also plenty of opportunities for UK food and drink beyond the EU, meaning government should keep its foot on the gas when it comes to improving the UK's trade relationships across other global markets. "Removing trade barriers and helping more businesses expand into new markets abroad presents a crucial growth opportunity, while diversifying our import markets is vital to protecting the UK's food security." "UK food, drink export revenues rose in Q1 but volumes flat " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
UK food, drink export revenues rose in Q1 but volumes flat
UK food and drink exports rose in value in the first quarter but volumes were flat amid a "continued struggle" to return to pre-pandemic levels. That was the view of the UK's Food and Drink Federation (FDF) as the industry trade body revealed shipments of food and beverages climbed 6.3% to £6bn ($8.1bn) in the opening three months of the year. However, with volumes relatively flat from the year-earlier quarter, the FDF highlighted in its latest Trade Snapshot report that food exports from the UK are 20.4% lower than they were in 2020, while non-alcoholic beverages are down 9.2%. 'Significant growth is needed to return to pre-pandemic levels' in the long term, the FDF said. Export volumes to the EU, the UK's largest trade partner, declined by 3.7% for food and 1.7% for non-alcoholic drinks compared to the first quarter of 2024. An agreement between the UK and EU in May to simplify sanitary and phytosanitary (SPS) controls - yet to be rubber stamped and finalised - could increase UK exports to the bloc by 22.5%, though not until 2027 at the earliest, the industry body said. Balwinder Dhoot, the director of industry growth and sustainability at the FDF, said the SPS talks are a 'positive step towards reversing a concerning decline in exports from the UK' but added that a deal is "far from a silver bullet'. 'It is vital that through these negotiations the UK secures the ability to influence EU regulatory decisions that will impact British businesses,' Dhoot said. Away from the EU, the FDF highlighted the potential "positive impact" for the UK's food and drink producers from recent trade deals with India and the US. The value of UK food and beverages exports to non-EU countries rose by 10.5% in the first three months of 2025 as "food producers take advantage of improved access to growing global markets", according to the FDF. For instance, the FDF said that since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect in December, UK exports of soft drinks to Malaysia have increased by 103% and sweets by 48%. Meanwhile, the trade body said the free-trade agreement with India is likely to benefit UK exporters of soft drinks, biscuits and chocolate in particular. "While there are encouraging signs of an improved global trade outlook ahead, FDF warns that there's more work to be done. It's vital that government continues to build closer trade relationships with trade partners, near and far, and prioritises British competitiveness in ongoing negotiations," it said. UK food and drinks exports to the US increased 23.4% in the first quarter, which the FDF said was probably in anticipation of US tariffs, before an agreement was struck between the two governments in May. However, the FDF added that negotiating the removal of the new 10% tariff should be a priority. Dhoot added: 'This new data demonstrates that there are also plenty of opportunities for UK food and drink beyond the EU, meaning government should keep its foot on the gas when it comes to improving the UK's trade relationships across other global markets. "Removing trade barriers and helping more businesses expand into new markets abroad presents a crucial growth opportunity, while diversifying our import markets is vital to protecting the UK's food security." "UK food, drink export revenues rose in Q1 but volumes flat " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Food firms want UK to improve EU relations, help on skills
The UK's leading food and drinks industry body is calling on the government to boost trade relations with the EU and support investment in training among fixes to address a reluctance to invest. UK food and beverage manufacturers are either cutting back or cancelling investments because of the prevailing economic challenges, according to The Food and Drink Federation (FDF). Allied with increasing production costs, a shortage of skilled labour in a rising wage environment, and ebbing confidence among industry players, the FDF has urged the UK government to 'prioritise a more strategic approach to EU trade relations' to revive exports still floundering in the wake of Brexit. 'As industry's ability to invest suffers, it's critical that food and drink receives its fair share of government funding and support to unlock innovation in the UK's largest manufacturing sector,' the FDF said as it presented the latest findings from its State of Industry report series. The FDF suggested vacancy rates within the food and drinks sector are 'more than double' those in the UK's wider manufacturing industry, adding that government investment in skills training is 'vital to plug this gap'. 'It's concerning that businesses are having to scale back investments that would help drive long-term growth and productivity as they ride out a wave of cost rises,' Balwinder Dhoot, the FDF's director of industry growth and sustainability, said as he stressed how the food and drinks sector is 'fundamental to the nation's food security'. He added: 'We urge government to give businesses the support they need to make investments that will support the resilience of the food industry.' Based on the FDF's research, 41% of UK food and beverage businesses plan to cancel or curtail investment in the year ahead in areas such as automation due to the recent Labour government's increases in the national minimum wage and employer national insurance contributions. 'Geopolitical uncertainty' is exacerbating investment decisions, it said. Some 33% of food and drinks businesses, including 47% of small- and medium-sized enterprises (SMEs), 'expect conditions to further deteriorate as they grapple with volatile global economic conditions and increased costs as a result of new government policies', the trade body revealed. Meanwhile, confidence among manufacturers 'remained persistently low' at 43% in the first quarter, the research found. While simplifying regulations and removing red tape remain common gripes in the industry, the FDF urged the government to allocate more financial resources to support R&D in the sector, particularly around providing healthier options for consumers, and to make it easier to secure tax credits. Trade agreements struck recently with India and the US, although the latter is currently limited in scope, were welcomed by the FDF as industry costs rise. It suggested production costs for food and drinks manufacturers increased by around 4.5% in the year through March, with 22% of those surveyed identifying a rise of 10% or more. And they expect an additional 4.8% increase in the next 12 months linked to energy, ingredients and labour costs. While the trade agreements will help boost 'competitiveness' for the UK food and drinks industry, the government must 'push for a reduction in the current 10% tariffs imposed by the US, whilst also strengthening our relationship with our strongest trading partner, the EU', the FDF said. "Food firms want UK to improve EU relations, help on skills" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Food, drinks firms want UK to improve EU relations, help on skills
The UK's leading food and drinks industry body is calling on the government to boost trade relations with the EU and support investment in training among fixes to address a reluctance to invest. UK food and beverage manufacturers are either cutting back or cancelling investments because of the prevailing economic challenges, according to The Food and Drink Federation (FDF). Allied with increasing production costs, a shortage of skilled labour in a rising wage environment, and ebbing confidence among industry players, the FDF has urged the UK government to 'prioritise a more strategic approach to EU trade relations' to revive exports still floundering in the wake of Brexit. 'As industry's ability to invest suffers, it's critical that food and drink receives its fair share of government funding and support to unlock innovation in the UK's largest manufacturing sector,' the FDF said as it presented the latest findings from its State of Industry report series. The FDF suggested vacancy rates within the food and drinks sector are 'more than double' those in the UK's wider manufacturing industry, adding that government investment in skills training is 'vital to plug this gap'. 'It's concerning that businesses are having to scale back investments that would help drive long-term growth and productivity as they ride out a wave of cost rises,' Balwinder Dhoot, the FDF's director of industry growth and sustainability, said as he stressed how the food and drinks sector is 'fundamental to the nation's food security'. He added: 'We urge government to give businesses the support they need to make investments that will support the resilience of the food industry.' Based on the FDF's research, 41% of UK food and beverage businesses plan to cancel or curtail investment in the year ahead in areas such as automation due to the recent Labour government's increases in the national minimum wage and employer national insurance contributions. 'Geopolitical uncertainty' is exacerbating investment decisions, it said. Some 33% of food and drinks businesses, including 47% of small- and medium-sized enterprises (SMEs), 'expect conditions to further deteriorate as they grapple with volatile global economic conditions and increased costs as a result of new government policies', the trade body revealed. Meanwhile, confidence among manufacturers 'remained persistently low' at 43% in the first quarter, the research found. While simplifying regulations and removing red tape remain common gripes in the industry, the FDF urged the government to allocate more financial resources to support R&D in the sector, particularly around providing healthier options for consumers, and to make it easier to secure tax credits. Trade agreements struck recently with India and the US, although the latter is currently limited in scope, were welcomed by the FDF as industry costs rise. It suggested production costs for food and drinks manufacturers increased by around 4.5% in the year through March, with 22% of those surveyed identifying a rise of 10% or more. And they expect an additional 4.8% increase in the next 12 months linked to energy, ingredients and labour costs. While the trade agreements will help boost 'competitiveness' for the UK food and drinks industry, the government must 'push for a reduction in the current 10% tariffs imposed by the US, whilst also strengthening our relationship with our strongest trading partner, the EU', the FDF said. "Food, drinks firms want UK to improve EU relations, help on skills" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-04-2025
- Business
- Yahoo
Food prices soar to record levels as officials warn of lasting impact: 'This month isn't likely to be a flash in the pan'
Food prices in the United Kingdom have climbed to their highest inflation rate in a year, squeezing household budgets and adding strain to businesses, reported the Daily Record. According to the Office for National Statistics, food and nonalcoholic drink inflation rose to 3.3% in January, up from 2% in December — the sharpest annual increase since March 2024. Essentials like butter, olive oil, and chocolate have seen particularly steep price hikes, raising concerns that costs may continue rising in the months ahead. The latest ONS data showed that while the prices for some foods, such as pasta and sugar, have dropped, many everyday staples are becoming more expensive. A key reason for this is higher agricultural costs. A global cocoa shortage, caused by a 13% drop in production in 2024, has led to the worst supply crisis in 60 years, pushing up chocolate prices. Meanwhile, butter prices have risen for four consecutive months, partly due to poor weather affecting UK dairy farms. The overheating of our planet is putting a strain on agriculture, causing the cost of groceries to soar and disrupting ecosystems and food chains. For many families, rising food prices mean adjusting shopping habits, cutting back on certain items, or stretching budgets further. Households with lower incomes, which already spend a larger share of earnings on food, are feeling the impact the most. Businesses are also under pressure. Higher energy costs, raw material shortages, and upcoming increases in labor costs — such as the rise in National Insurance Employer Contributions and the National Minimum Wage in April — are likely to push prices up even more. "Rising energy and water bills as well as higher commodity prices, like dairy and cocoa, are all having an impact on production costs," says Balwinder Dhoot, director of industry growth at the Food and Drink Federation. "Unfortunately, this month isn't likely to be a flash in the pan for rising food and drink prices." Dhoot added: "We urge government to work with industry to simplify regulation and bring business costs down to help protect consumers from rising prices." While officials have acknowledged the issue, no major policy changes have been announced yet. For now, consumers may find it helpful to buy seasonal and locally sourced produce when possible, plan meals carefully to reduce food waste, and explore lower-cost alternatives to higher-priced staples. While food prices are expected to remain high for the foreseeable future, it is hoped that both policymakers and industry leaders are working to find solutions that support consumers and businesses alike. Do you worry about how much food you throw away? Definitely Sometimes Not really Never Click your choice to see results and speak your mind. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
