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In the first three months of 2021, Britain’s food and beverage exports to the EU have fallen by nearly half year-on-year. The trade organization said this is an indicator of the impact of trade barriers after Brexit.

According to data from the Food and Beverage Federation, the industry body, the value of agricultural products exported to European countries in the first quarter of this year was 1.7 billion pounds, a decrease of 46.6% from 2020.

Compared with exports in 2019 that were not affected by the pandemic, the decline was even greater-a 55.1% drop, or £2 billion.

Dominic Goudie, FDF’s head of international trade, said: “The loss of £2 billion in exports to the EU is a disaster for our industry, and it is very clear that the scale of the losses faced by British manufacturers in the long term is due to the new trade barriers with the EU. “

Companies are struggling to cope with the costs, paperwork and delays caused by new customs and veterinary inspections, and small businesses have recently encountered obstacles when sending multiple shipments in one load.

John Whitehead, director of the Food and Beverage Exporters Association, said: “While part of the reason for this sharp drop can be attributed to year-end inventory, it is due to additional bureaucracy, customs delays and the cost of trading with the EU.”

Exports to non-EU countries increased slightly—up by 0.3% to 2 billion pounds, surpassing exports to Europe—but this was not enough to prevent total food and beverage exports from falling by 28.1% to 3.7 billion pounds.

Products ranging from whiskey to chocolate, lamb, cereals and sauces have been affected. Whiskey sales to the European Union fell 11.6% to 256.5 million pounds, while chocolate sales fell more than one-fifth to 99.3 million pounds, and lamb and mutton sales fell 16.8% to 74.8 million pounds.

Dairy products have been hit hardest, with milk and cream exports to Europe falling by 90%. The FDF stated that the Covid-19 disruption and Brexit factors continue to affect sales.

Ireland was previously the UK’s largest food and beverage export market, and sales to Ireland fell by more than two-thirds to 281 million pounds.

Whitehead stated that his team members “continue to struggle with the inconsistent interpretation of the regulations across the EU and have to weigh whether the time and costs involved are sustainable.”

Goody called on the government to implement the FDF’s previous plans, including the establishment of a Food and Beverage Export Committee to help cooperation within the UK and provide exporters with more professional support.

The government stated that overall exports to the EU in March and April exceeded the 2020 level, while providing support from export helplines, webinars, trade consultants, and a £20 million Brexit support fund for SMEs.

They said: “The impact of the Covid pandemic across Europe has affected trade and suppressed demand. It is too early to draw any clear conclusions on the long-term impact of our new trade relationship with the EU.”

“We will continue to help companies gain the support they need to trade effectively with Europe and seize new opportunities as we reach trade agreements with the world’s fastest-growing markets.”

The FDF stated that food and beverage imports fell by 10% in the first quarter due to a drop of more than 15% in imports from the European Union, partly due to the continued closure of UK hotel premises due to Covid-19.

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