Brexit barriers hit profits for over half of UK food and drink exporters

The Department for Environment, Food & Rural Affairs (Defra) published survey results on 13 November 2026. The research, carried out for the department by ICF, covered 600 small and medium food and drink manufacturers across England, Scotland and Wales.

The survey is not a direct tally of losses but the firms' own assessment of how their trade and profits changed once EU trade became harder. Such surveys help the government see where barriers bite hardest and what to take into negotiations with Brussels.

What did the figures show?

After new EU trading requirements began in January 2021, 55% of SME exporters to the EU reported lower profitability. Among importers from the EU, 47% said the same. Of the firms that stopped trading with the EU altogether since 2021, 69% of exporters and 55% of importers said Brexit was a major reason.

What holds business back most?

Exporters named three top problems: paperwork (flagged by 79%), trading costs (78%) and border delays (71%). For importers the same issues scored 68%, 65% and 64%. Clear government guidance was rated extremely or very influential by 71% of exporters and 61% of importers.

What could change?

The government is negotiating a new UK-EU food and drink deal — a so-called SPS (sanitary and phytosanitary) agreement covering food and plant safety rules. 58% of firms said such a deal could help them increase, resume or begin exporting within a year; half said the same for imports. A UK-EU summit is set for 20 November 2026.

What do importers want?

For firms importing from the EU the priorities are the same: less paperwork (68%), lower trading costs (65%) and fewer border delays (64%). Clear government guidance was rated important by 61% of importers against 71% of exporters. The survey landed just before negotiations: a UK-EU summit is set for 20 November 2026, and the ninth meeting of the European Political Community took place in Dublin on 12 November. The research is titled "EU Trade Opportunities for Food and Drink SMEs under a UK-EU SPS Agreement".

Why it matters to shoppers

Food makers include small family firms. Environment Secretary Dame Angela Eagle said "behind every one of these figures is a family firm". Trade barriers raise business costs, which eventually feed through to the range and prices on shop shelves. The survey reflects the firms' own reports and stated intentions, rather than a direct count of actual losses.