United Kingdom 2020 Export Highlights
Top 10 U.S. Agricultural Exports to United Kingdom(values in million USD) |
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| Commodity | 2016 | 2017 | 2018 | 2019 | 2020 | 2019-2020 % Change | 2016-2020 Average |
| Wine & Beer | 363 | 262 | 257 | 263 | 250 | -5% | 279 |
| Tree Nuts | 200 | 212 | 197 | 211 | 197 | -7% | 204 |
| Prepared Food | 191 | 157 | 167 | 151 | 175 | 16% | 168 |
| Fresh Vegetables | 84 | 84 | 86 | 77 | 73 | -5% | 81 |
| Soybeans | 90 | 0 | 109 | 100 | 60 | -40% | 72 |
| Snack Foods | 66 | 58 | 49 | 49 | 57 | 16% | 56 |
| Vegetable Oils* | 22 | 28 | 40 | 39 | 41 | 4% | 34 |
| Feeds & Fodders | 58 | 42 | 68 | 52 | 39 | -26% | 52 |
| Dairy Products | 5 | 9 | 27 | 12 | 36 | 186% | 18 |
| Animal Fats | 35 | 61 | 22 | 23 | 34 | 51% | 35 |
| All Other | 790 | 788 | 801 | 672 | 641 | -5% | 739 |
| Total Exported | 1,906 | 1,702 | 1,823 | 1,649 | 1,603 | -3% | 1,737 |
Source: U.S. Census Bureau Trade Data - BICO HS-10
*Excludes soybeans
Highlights
In 2020, the United Kingdom (UK) was the 15th-largest destination for U.S. agricultural exports, totaling $1.6 billion. This represents a 3-percent decrease from 2019 value. While the COVID-19 pandemic has negatively affected the foodservice sector, grocery retailers, especially online grocery shopping platforms, have benefited. The UK’s withdrawal from the European Union may provide opportunities for the United States to increase market share in the UK. The United States continues to be the second-largest supplier of agricultural goods, behind the combined member states of the European Union. The UK was the 12th-largest market in the world for U.S. consumer-oriented products such as wine and snack foods. The largest export growth in 2020 was seen in prepared food and dairy products, up $24 million and $23 million, respectively. Exports of soybeans were down by more than $39 million. Exports of tree nuts, feeds & fodders, and wine & beer were down $14 million, $13 million, and $13 million, respectively.
Drivers
- There was a 16-percent increase in prepared foods exports, likely due to COVID-related restrictions and the rising number of single households driving demand for convenient ready-to-eat meals, desserts, and baking mixes.
- Sourcing of U.S. soybeans is driven by price and availability. Exports peaked in 2018 due to increased availability at favorable prices due to the disruption of U.S. exports to China. The 2020 figure reflects the UK sourcing more soybeans directly from Brazil, but also soybeans of unknown origin through EU countries like Ireland and Belgium. The UK is importing more soybean meal, including from the United States.
- UK feed & fodder imports are linked to the relative fortunes of the domestic grain harvest. UK crop production in 2019 recovered to a good level and negated the need to import as much feed and fodder in 2020.
United Kingdom’s Agricultural Suppliers
Looking Ahead
In 2020, agricultural exports from the United States to the UK decreased 3 percent. However, the outlook going forward is positive, particularly for grocery products and ethanol. With a poor harvest in the UK in 2020 (e.g., both wheat and rapeseed production decreased by 40 percent from 2019), the outlook for feed & fodder from the United States is also positive in 2021. U.S. soybeans exports are not expected to grow, however, as Brazil is on track for record exports this season.
The UK departed the European Union (EU) customs union in December 2020. As a starting point, the UK is basing its food law and import requirements on EU legislation, including the format of animal and plant export health certificates. There is still uncertainty about the approach the UK will take moving forward.
The United States and the EU will continue to be competitors in the UK market with the EU having advantages of proximity, integrated supply chains, and trade without import duties. U.S. products will face most favored nation tariffs, which for a number of products exceed 25 percent. In addition, rules of origin under the UK-EU Trade Agreement could impact the re-export of imported third country goods from the UK to the EU if insufficiently processed in the UK. This could impact U.S. products that are transshipped or packaged in the UK and continue to the EU market.