Britain’s food and drink trade deficit has widened to over £21bn during the first half of 2026, marking the largest shortfall since 2000, according to analysis by the Food & Drink Federation. The expansion of the deficit reflects multiple pressures on the domestic food sector, drawing warnings from industry leaders about national food security.
Export volumes declined significantly, falling by 11.7% to 4bn kg in the first half of the year, reaching levels comparable only to periods following major disruptions such as the Covid pandemic and the 2001 foot-and-mouth outbreak. Trade with the European Union continued to deteriorate, with export values down 0.9%, while non-EU markets experienced sharper declines of 6.9% in value terms. Disruptions to Middle Eastern sales accounted for part of this drop, with exports to the UAE down nearly a quarter due to regional conflict. American tariffs introduced this year reduced cross-Atlantic sales by 16.5%.
Imports, meanwhile, have continued climbing. Food and drink imports reached 19.1bn kg in the first half of 2026, the second-highest volume on record. External trade agreements, particularly with Australia, have increased import volumes substantially, with Australian shipments up 25% in value terms year-over-year. Government tariff suspensions on manufactured foods including chocolate and biscuits, implemented as a cost-of-living measure, have also boosted import levels. EU producers have similarly increased deliveries to the UK, with values up 0.8% despite earlier Brexit-related challenges.
Industry representatives have characterised the situation as requiring urgent government attention. The National Farmers’ Union president identified rising production costs, regulatory burdens, and global market volatility as mounting pressures on farm businesses, while trade bodies highlighted concerns about energy costs, ingredient prices, transport, packaging, and labour expenses. Officials have called for long-term support mechanisms and policies that would strengthen domestic production capacity and recognise the connection between food production and national security.
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