UK food and drink trade deficit hits largest since 2000 at more than £21bn

Britain's food and drink trade deficit has widened to more than £21bn, reaching its largest level since 2000. The latest figures point to a sharp deterioration in the balance between exports and imports, with industry leaders warning that domestic food production is becoming a national security issue. The data also show that export performance weakened while imports remained elevated, deepening pressure on the sector.

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According to analysis by the Food & Drink Federation, UK food and drink export volumes fell by 11.7% in the first half of 2026 to 4bn kg. Exports to the European Union fell 0.9% in value terms, while sales beyond the bloc dropped 6.9%. The federation said exports to the United Arab Emirates fell by almost a quarter, which it linked to disruption in the Middle East following the US-Israel war on Iran.

The United States also weighed on trade performance after introducing a 10% import tariff, which reduced cross-Atlantic sales by 16.5%. On the import side, food and drink arrivals reached 19.1bn kg in the first half of the year, the second highest on record and only below the same period in 2025. Imports from outside the EU have risen by more than a fifth since 2023, helped by trade deals and by the suspension of tariffs on some manufactured foods, including chocolate and biscuits.

The figures matter because food trade is closely tied to supply resilience, farm incomes and wider economic security. Industry leaders said the latest numbers were a warning that Britain cannot take its food production capacity for granted at a time of geopolitical uncertainty. The data also add to debate over how far trade policy, tariff changes and post-Brexit trading frictions are shaping the country's food system.

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The Food & Drink Federation said exports to the EU continued to fall because of the additional costs and complexity of trading since Brexit. It also noted that EU food producers increased deliveries to the UK in value terms by 0.8% year on year, suggesting that imports remain comparatively strong even as British exporters struggle to regain momentum. The federation's assessment points to a widening gap between the UK's ability to sell abroad and the scale of demand at home.

Tom Bradshaw, president of the National Farmers' Union of England and Wales, said the figures should be a wake-up call. He argued that, in a period of growing geopolitical uncertainty, food production capacity should not be taken for granted. What remains unclear is how quickly export volumes can recover, and whether ministers will respond with policy changes aimed at supporting domestic producers and improving trade conditions.

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