The Food and Drink Federation (FDF) has reported a £2 billion decline in UK food and drink exports due to a loss of trade with the European Union.
The organisation said that non-EU exports have seen an increase to almost pre-pandemic levels.
However, the country has suffered a “sharp drop” in sales to the EU which are down by a quarter since 2019.
The Federation points to new trade barriers and complications arising from the Covid-19 pandemic attributing to the fall in export sales.
“The return to growth in exports to non-EU markets is welcome news, but it doesn’t make up for the disastrous loss of £2 billion in sales to the EU,” FDF head of international trade Dominic Goudie said.
“It clearly demonstrates the serious difficulties manufacturers in our industry continue to face and the urgent need for additional specialist support.”
Food and drinks exporters association representative John Whitehead added: “There is growing evidence that the complexity of trading with the EU has led to businesses moving operations into Europe and of importers looking for alternative suppliers, contributing to the ongoing decline in both UK exports and UK jobs.”