Britain’s food and drink trade deficit has climbed to more than £21 billion, the highest level since 2000, as exports declined and imports increased during the first half of 2026. Industry representatives have warned that the widening gap highlights growing concerns over domestic food production and the country’s ability to maintain food security amid geopolitical and economic uncertainty.
According to an analysis by the Food and Drink Federation, UK food and drink export volumes fell by 11.7% during the first six months of 2026 to about 4 billion kg. The decline brought export volumes close to levels recorded during the Covid-19 pandemic and the aftermath of the 2001 foot-and-mouth disease outbreak.
Exports to European Union countries declined by 0.9% in value terms, with industry representatives pointing to additional costs and administrative complexities associated with trading following Brexit. Exports to countries outside the EU recorded a larger decline of 6.9% in value terms.
The fall in overseas sales has been linked to a combination of factors, including geopolitical tensions, trade barriers and disruption in key markets. Food and drink exports to the United Arab Emirates fell by almost a quarter amid disruption linked to the conflict involving the US, Israel and Iran. Meanwhile, a 10% US import tariff contributed to a 16.5% decline in British food and drink sales to the American market, according to the federation’s analysis.
At the same time, food and drink imports into Britain have reached exceptionally high levels. The UK imported around 19.1 billion kg of food and drink during the first half of 2026, making it the second-highest figure recorded for the period. Only the corresponding period of 2025 was higher.
Imports from countries outside the EU have increased by more than a fifth since 2023, partly following the easing of restrictions through new trade agreements. Australia has emerged as one of the countries benefiting from the increase, with the value of its food and drink exports to the UK rising by 25% over the past year. Products being shipped include meat, oils, vegetables and whisky.
Changes to tariffs have also contributed to the increase in imported food products. Tariffs on a range of manufactured foods, including chocolate and biscuits, were suspended this year as part of measures announced by former chancellor Rachel Reeves aimed at easing pressure on household finances. The move has helped increase the availability of imported products in the British market.
The figures have prompted calls from farming and food industry representatives for greater government support for domestic producers. Tom Bradshaw, president of the National Farmers’ Union of England and Wales, said the widening trade deficit should prompt the government to reconsider its approach to domestic food production.
Bradshaw argued that Britain’s agricultural production capacity should be treated as an important component of national resilience, particularly at a time of geopolitical uncertainty. He also pointed to pressures faced by farmers, including rising costs, regulatory requirements, extreme weather and volatility in global markets.
The figures have renewed the debate over Britain’s dependence on imported food. While imports help provide consumers with a wide range of products and can support supply during periods of domestic shortages, the decline in exports alongside rising imports has raised concerns among industry groups about the long-term health of Britain’s food production sector.
The Food and Drink Federation’s figures come at a time when British businesses are navigating the continuing effects of Brexit, changing international trade arrangements and instability in global markets. Industry leaders are calling for a long-term strategy that would encourage investment in domestic farming and food manufacturing while helping British producers remain competitive in overseas markets.
