Brexit shuts down UK dairy exports

The United Kingdom will be hit hard by Brexit. The dairy sector in particular has been hit hard when it comes to exports to Europe. Milk and cream exports fell by as much as 96% in February 2021 compared to the same month last year.

Total food exports to the EU fell by 41%. Exports from the United Kingdom to the Netherlands suffered less (-6,7%). In addition to cream and milk, the export of chicken, cheese and beef has also fallen sharply. According to the Food and Drink Federation (FDF), Brexit is the cause of this sharp decline. This organization represents over 800 companies within the food industry in the United Kingdom .

Exports to destinations outside the European Union have increased by 8,7%. Because this market is a lot smaller and has grown less quickly, this does not outweigh the losses within the EU. In the first 2 months of 2021, exports to the EU have already decreased by £1,1 billion compared to 2020.

Re-negotiating with EU
The FDF instructs the government to renegotiate the trade agreements with EU members. Both parties benefit from solutions to stimulate the economy, the federation believes. According to Prime Minister Boris Johnson, the export declines are temporary and exports will increase over time.

This seems to be somewhat correct because exports have already improved a lot in February compared to January 2021. In January 0,4 billion British pounds was exported in food and this has already increased by 77,4% to 0,7 billion British pounds in February.

The FDF expects the impact of Brexit to be lasting and there will be a lot of volatility as the market has become unbalanced.

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