The UK food and drink trade deficit widened to more than £21bn in the first half of 2026, marking the largest gap since 2000. The UK food and drink trade deficit reflects falling exports alongside rising imports, according to industry analysis.
Industry leaders described the figures as a warning for ministers to prioritise domestic production, arguing that food resilience is a matter of national security.
UK food and drink trade deficit widens as exports fall
According to the Food & Drink Federation (FDF), export volumes dropped by 11.7% year on year to 4bn kg in the first six months of 2026. That level is only slightly higher than at the height of the Covid pandemic and in the aftermath of the 2001 foot-and-mouth outbreak.
Sales to the EU slipped 0.9% in value as businesses continued to face higher costs and more complex procedures since Brexit. Exports to non-EU markets fell more sharply, down 6.9% in value.
The FDF said trade beyond Europe was hit by multiple shocks. Shipments to the Middle East were disrupted, with exports to the United Arab Emirates down by almost a quarter, which the federation linked to the impact of the US-Israel war on Iran. In addition, a 10% US import tariff led to a 16.5% decline in sales to the American market.
Imports near record highs amid tariff changes
Imports reached 19.1bn kg in the first half of the year, the second highest on record and just below the same period in 2025. Purchases from outside the EU are more than a fifth higher than in 2023, supported by eased restrictions through new trade deals.
Australia now sends 25% more to the UK in value terms than a year earlier, including meat, oils, vegetables and whisky. Tariff suspensions on a range of manufactured foods this year, including chocolate and biscuits, introduced under former chancellor Rachel Reeves to help with living costs, also lifted import volumes.
EU suppliers increased shipments to the UK in value terms by 0.8% year on year and have recovered in volume since Brexit.
Calls for a long-term plan to bolster domestic production
Tom Bradshaw, president of the National Farmers’ Union of England and Wales, said the figures should be a “wake-up call”. He warned that in a period of heightened geopolitical risk the country “cannot afford to take our food production capacity for granted”.
He said the widening deficit underscored the need for a long-term strategy to back British producers and to recognise that “food security is national security”. Bradshaw cited mounting pressures on farm businesses, including higher input costs, regulatory demands, extreme weather and market volatility.
He called on government to create conditions that support investment and growth.
Manufacturers face rising costs and regulatory change
The FDF, which represents hundreds of food and beverage companies, said manufacturers are contending with increasing costs for energy, ingredients, transport, packaging and labour, while regulatory changes add to the burden.
FDF chief executive Karen Betts said the deficit is now the largest in more than 25 years, raising difficult questions about the UK’s food security amid global conflict and climate pressures. She added that when the government removes tariffs on products such as biscuits imported from China, it is unsurprising that those goods can be sold more cheaply in the UK than domestically produced alternatives.
She added that when the government removes tariffs on products such as biscuits imported from China, it is unsurprising that those goods can be sold more cheaply in the UK than domestically produced alternatives, a concern that echoes wider debates over sanctions and trade in conflicts such as the US strikes in Iran.