Uk Export

UK Food & Drink Export Performance Full Year 2010

March 2011

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UK Food & Drink Export Performance Full Year 2010

Top Line Performance

 UK food and non-alcoholic drink exports grew a healthy 11.4% in 2010 to £10.83bn breaking the £10bn barrier for the first time. The results mark the sixth consecutive year of record food and non-alcoholic drink export performance. Compared to the meagre 5.1% growth rate in 2009, the 2010 performance was much improved largely due to reasonable export growth in the EU and exceptionally strong growth in both mature and developing non-EU markets. The global economic climate improved in 2010, particularly in the last 6 months as key western economies recovered and developing economies continued to strengthen. The pound remained weak over the course of 2010 and will no doubt have continued to make UK food and drink products attractive overseas (£1 was worth €1.17 in 2010 versus €1.12 in 2009 and US$1.55 in 2010 versus US$1.57 in 2009). The pound was marginally stronger than the euro in 2010 but weakened slightly against the dollar. There was however very little correlation between currency fluctuations over the year and export growth. Price was no doubt the biggest factor affecting the growth in value of exports in 2010. UK CPI food price inflation in June was at 1.9%, by December it reached 6.1% stemming from increases in food commodity prices. As a result second half export performance was responsible for 74% of total growth between...