Britain’s widening agri-food trade deficit could represent a major growth opportunity for farmers, the NFU has said, as the UK pushes ahead with new trade negotiations.
Speaking at the recent Oxford Farming Conference, NFU head of trade and business strategy Gail Soutar said the scale of the deficit highlighted the need to boost exports and strengthen domestic production.
She told delegates that the UK’s agri-food trade gap now stands at around £3.5bn a month, a figure she said should focus attention on what farming could gain.
“The UK is, and always has been, a trading nation,” Soutar said. “But in recent years, we’ve seen imports grow rapidly in value, while export growth has lagged well behind.”
She said the imbalance points to opportunities to grow both the value and volume of British exports, while replacing imports with high-quality, home-grown products. “This represents untapped potential,” she said.
Soutar said trade policy will remain a fast-moving issue for farming, with negotiations under way or expected with partners including the EU, Turkey and Switzerland.
She said those talks are likely to centre on market access, regulatory barriers and ensuring UK agri-food products can compete on a level playing field.
“From an international trade perspective, things are going to continue at pace in the year ahead,” Soutar said.
She was speaking during a panel discussion on building trade resilience, which also examined why some sectors have been more successful than others in export markets.
Scotch whisky was highlighted as a clear example of export strength, accounting for around a quarter of all UK food and drink exports.
The comparison was used to show how consistent market access, long-term strategy and strong international positioning can translate into export success — something many agricultural sectors are seeking to replicate.
However, the panel also heard that exporters are facing mounting pressures.
“But we face challenges that are familiar to everyone in this room,” said Emily Weaver Roads of the Scotch Whisky Association. “Geopolitical and trade volatility, reduced consumer confidence and spending power, and increased costs of doing business.”
Soutar said the contrast underlined the need for future trade agreements to deliver tangible benefits across agriculture, rather than concentrating gains in a small number of high-performing sectors.
With multiple trade talks under way, she said the coming year would be critical in determining whether new deals help narrow the trade gap and translate into improved returns and resilience for farmers.
