The export value of U.K. salmon increased by more than 53 percent to GBP 408 million (USD 525.2 million, EUR 447.4 million) in the first-half of this year, helping the country achieve a record total value for its overseas food and drink sales, confirmed new industry figures issued by the Food and Drink Federation (FDF).
Whisky remained the nation’s top export, while salmon was second and beer leapfrogged chocolate to take the third slot. But while the volume of salmon exports rose by 24 percent, the volume of whisky exports declined by 1 percent and beer exports fell 2.2 percent.
Overall, U.K. food and drink exports increased by 8.5 percent in value to GBP 10.2 billion (USD 13.1 billion, EUR 11.2 billion), largely helped by the fall in the pound after last year's vote to leave the EU. But the FDF has warned that without a favorable Brexit trade deal, British exports could become less competitive.
Furthermore, while the fall in the price of the pound had helped to boost U.K. export competitiveness, the currency weakness has also led to an increase in the cost of many essential imported ingredients and raw materials. This has resulted in the country's food and drink trade deficit increasing by 16 percent to GBP 12.4 bilion (USD 16 billion, EUR 13.6 billion) in H1 2017, said the federation.
Food and drink exports to the EU27 grew at a faster rate than to non-EU markets, increasing the share of sales to the EU to 61.2 percent. Nevertheless, the United States is one of the top three destinations for U.K. food and drink in terms of overall value, reaching GBP 91.5 million (USD 117.8 million, EUR 100.3 million) in H1 2017, up from GBP 87.8 million (USD 113 million, EUR 96.3 million) in the corresponding period of last year.
The U.S. market has already been identified by the U.K. government as providing significant opportunities for a trade deal post-Brexit.
Scotland was by far the biggest contributor to the salmon export growth, accounting for GBP 346 million (USD 445.3 million, EUR 379.3 million) of the overseas sales, up 70 percent year-on-year. In the second quarter of this year, 29,000 metric tons (MT) of fresh salmon was exported with a value of GBP 190 million (USD 244.6 million, EUR 208.3 million), representing a 22 percent increase over the first quarter.
The United States remains the largest non-EU market for Scottish salmon while China is the most significant market in Asia.
