Survey Reveals Fragile UK Food Industry Confidence

 Breaking News
  • Scottish Food and Drink Exports Hit Record £6 Billion Overseas Scottish food and drink exports were worth approximately £6 billion in 2017 – almost £570 million more than 2016. Food exports were valued at about £1.6 billion – a rise of 15% (£214 million) during the same period. Exports of food to Europe were worth £1.1 billion after an increase of 13%, or £125 [...]...
  • UK Casual Dining Contraction is Independents’ Opportunity With casual dining brands closing sites and scaling back expansion in the UK, well-run independent operators have an opportunity to take back market share, says buying specialist Lynx Purchasing. Operators who do their homework on the eating-out market, including implementing strong buying disciplines, can broaden their customer appeal, says Lynx Purchasing managing director Rachel Dobson. “Since the [...]...
  • AAK UK Opens First Customer Innovation Centre AAK UK has opened a new Customer Innovation Centre in Hull to take its co-development work with leading food brands to new levels of success. AAK, the UK’s leading manufacturer and supplier of edible oils, fats and semi-speciality oil ingredients, works in close partnership with some of the most famous names in food and bakery to [...]...
  • Marks and Spencer Selects Zetes to Transform Food Supply Chain Operations Marks and Spencer (M&S) has selected Zetes to help transform visibility and fulfilment across its fresh food supply chain. The partnership will also see greater collaboration between M&S and its food suppliers via Zetes’ supply chain visibility platform, ZetesOlympus. Through ZetesOlympus, M&S will gain real-time fulfilment performance insight across its fresh food supply chain. The platform will help M&S [...]...
  • Guinness Remains Ireland’s Most Valuable Brand at €2.1 Billion Guinness remains Ireland’s most valuable brand after growing by 5% over the last year to a brand value of €2.1 billion on the back of new product innovations and steady sales of the world-famous draught, according to the latest report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Guinness’s brand value has [...]...

Survey Reveals Fragile UK Food Industry Confidence

Survey Reveals Fragile UK Food Industry Confidence
October 25
09:00 2016

Concerns are mounting within the largest manufacturing sector in the UK – food and drink – and confidence is becoming more fragile, a survey of Food and Drink Federation (FDF) members reveals. The survey coincides with quarterly figures from UK retailers showing food sales at their highest levels since 2013, suggesting a disparity between business and consumer confidence levels.

Following the UK’s vote to leave the European Union (EU), a majority of food and drink companies responding to FDF’s survey report increased ingredient prices, a drop in product margins, and concerns for the future raised by their EU workforce. More than two thirds (69.5%) of respondents are less confident about the UK business environment, with only around one in ten (11.2%) more confident.

FDF is calling for an industrial strategy partnership with Government to support the development of food and drink manufacturing, a sector in which the UK has a competitive advantage.

Food and drink manufacturing supports 3.9 million jobs across the £108 billion UK food chain and employs 400,000 people directly. Of these, almost a third (29%) are non-UK EU nationals. A large majority (71%) of companies surveyed employing EU staff report their EU employees have expressed concerns about the Referendum outcome, with around one in 12 (8.7%) reporting that EU employees intend to leave the UK. FDF is calling for urgent assurances for the industry’s workforce from the EU that they will have leave to remain in the UK.

Ian Wright CBE, director general of FDF.

Ian Wright CBE, director general of FDF.

Food and drink producers face tough trading conditions, with three quarters of companies seeing ingredient prices increase largely as a result of the weak pound, with product margins falling for most survey respondents. This trend is expected by most companies to continue over the next 12 months. Urgent action from Government is needed to ensure essential imports of ingredients and raw materials from the EU and EU Free Trade Agreement (FTA) countries do not face tariffs or costly non-tariff barriers.

FDF’s survey results reflect the sentiment of one third of its full membership including micro, small, medium and large food and drink manufacturers.

Ian Wright CBE, Director General of the Food and Drink Federation, comments: “We share Government’s view that we need to make the best of Brexit. Food and drink industry confidence is low. Slower revenue growth, coupled with prolonged business uncertainty, is affecting the industry’s ability to invest.”

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 18, 2018ProWein
  • March 21, 2018World Olive Oil Exhibition
  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here