UK Food and Drink Trade Deficit Passes £21 Billion as Export Volumes Fall 11.7%

Britain’s food and drink trade deficit has widened beyond £21 billion, the largest gap since 2000, as export volumes weakened sharply while imports remained close to record levels.

Food and Drink Federation analysis reported by The Guardian shows export volumes fell 11.7% in the first half of 2026 to about 4 billion kilograms. Exports to the European Union slipped 0.9% in value, while exports beyond the EU declined 6.9%.

The pressure was particularly visible in major overseas markets. UK food and drink exports to the United States fell 16.5% amid a 10% import tariff, while shipments to the United Arab Emirates dropped by almost a quarter amid disruption linked to conflict in the Middle East.

Imports moved in the opposite direction. Britain imported 19.1 billion kilograms of food and drink during the first half, the second-highest first-half volume on record. Imports from outside the EU have risen by more than a fifth since 2023 as new trade arrangements and tariff changes expanded access for overseas suppliers.

The widening gap is becoming a strategic issue for farmers and manufacturers because it combines weaker export competitiveness with rising reliance on imported food. Industry groups are calling for policy that supports domestic investment, productivity and market access while controlling the cumulative cost of energy, ingredients, transport, packaging, labour and regulation.

For agrifood companies, the figures underline how trade policy is now feeding directly into sourcing and investment decisions. The balance between lower-cost imports, domestic manufacturing resilience and export market access is likely to remain a central issue for the UK food economy.