The United Kingdom is facing a record-breaking food and drink trade deficit of over £21 billion, the highest level recorded since 2000. This widening gap, driven by a combination of Brexit-related trade complexities, international conflict, and newly introduced tariffs, has prompted urgent calls from industry figures for government intervention to bolster domestic production.
Analysis from the Food & Drink Federation (FDF) shows that export volumes plummeted by 11.7% in the first half of 2026, totaling 4 billion kilograms. This performance sits barely above levels seen during the height of the Covid-19 pandemic and the aftermath of the 2001 foot-and-mouth disease crisis. Exports to the European Union declined by 0.9% in value, while markets outside the bloc saw a more significant 6.9% drop. Specifically, cross-Atlantic sales were hampered by a new 10% US import tariff, which triggered a 16.5% decline in trade, while ongoing instability in the Middle East led to a nearly 25% reduction in exports to the UAE.
Conversely, import volumes reached 19.1 billion kilograms in the first half of the year, the second-highest figure on record. Non-EU imports have surged by over 20% since 2023, facilitated by new trade agreements, including a deal with Australia that boosted that nation’s exports of meat, oils, vegetables, and whisky to the UK by 25%. Further contributing to the influx, the government’s decision to suspend tariffs on various manufactured goods—such as biscuits and chocolate—to help manage cost-of-living pressures has increased competition for domestic producers.
Karen Betts, chief executive of the FDF, noted that the deficit is at its worst in over 25 years. She highlighted the competitive disadvantage facing British manufacturers, stating that when tariffs are removed for international goods like biscuits from China, they are inevitably sold more cheaply than their locally produced counterparts. Betts warned that these trends raise critical questions about national food security amidst a landscape defined by global conflict and climate change.
Tom Bradshaw, president of the National Farmers’ Union of England and Wales, described the trade figures as a significant “wake-up call.” Emphasizing that “food security is national security,” Bradshaw argued that the current deficit highlights the urgent need for a long-term strategy to support UK agriculture. He pointed to the immense pressures currently stifling farm businesses, including soaring costs for labor, packaging, and energy, as well as regulatory burdens, extreme weather, and market volatility.
The FDF emphasized that manufacturers are grappling with rising costs across the supply chain, from ingredients to transport. Industry leaders are now pressuring the government to create stable economic conditions that allow businesses to invest and innovate. Without such support, they warn that the nation remains dangerously exposed, unable to take its domestic production capacity for granted during a period of deepening geopolitical uncertainty. The report also notes that exports to the EU continued to fall – down 0.9% in value – amid the additional costs and complexity of trading since Brexit. The report also notes that with exports to the UAE down by almost a quarter as a result of the US-Israel war on Iran, that was partly driven by disruption in sales to the Middle East. The report also notes that in addition, EU food producers increased deliveries to the UK in value terms – up 0.8% year-on-year – having recovered in volume terms since Brexit. The report also notes that this poses some stark questions about our food security, in a world beset by conflict and the ever-increasing impacts of climate change.
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