Exporting is a huge opportunity for Welsh food and drink businesses, but it requires more than just keeping an eye on new trade deals.
The reality is that a trade deal does not automatically mean new markets will open up. There are many barriers that businesses need to navigate, from export health certificates to complex market access rules. That is why Welsh producers need to take a strategic approach, focusing on market prioritisation rather than trying to go after every opportunity at once. The Export Cluster is here to help businesses do exactly that.
A good example of the challenges businesses face is red meat exports. Trade deals are often announced with great enthusiasm, but the detail matters. Take the UK’s deal with India – Welsh lamb theoretically has market access, but the requirement for farms to prove they have been disease-free for ten years is unworkable. Many farms would meet this requirement in practice, but they cannot provide the documentation to satisfy the Indian authorities. Without the right conditions in place, a trade deal alone does not lead to new export success.
At the same time, businesses cannot afford to ignore exports. Wales produces far more food and drink than it consumes, and developing international markets is key to future growth. Only around 4% of Welsh lamb is consumed within Wales, while about 60% is sold elsewhere in the UK. That leaves over a third needing export markets.
Different countries place different values on different products, and this can create opportunities. Beef tongue, for example, is considered a low-value product in the UK but is in high demand in Japan, meaning Welsh beef farmers can maximise the value of the whole carcass by exporting to the right markets.
Exporting also provides resilience. The pandemic demonstrated how vulnerable businesses can be when they rely too heavily on a single market. When the UK’s food service sector was severely disrupted, businesses with well-established export markets had a lifeline. Diversifying across multiple markets can help businesses weather future shocks.
For businesses considering exporting, it is important to take a structured approach. The Export Cluster offers a five-step training programme to help businesses understand what they need to do to succeed. This includes assessing different markets based on stability, competition, consumer preferences and disposable income. Rather than trying to sell everywhere, businesses should focus on where they can command a premium and where market conditions are favourable. The Export Cluster provides tailored advice and support to help businesses navigate these decisions.
While Wales does not yet have the international profile that Scotland or Ireland enjoys, sport has proven to be a highly effective way to raise awareness of Welsh food and drink. The Rugby World Cup in Japan in 2019 coincided with Welsh lamb and beef gaining market access there. The increased visibility of Wales helped spark interest in Welsh products, leading to a surge in exports. Similar work was done around the Football World Cup in Qatar, and last year the Welsh Government used India’s cricketing ties to increase awareness of Welsh food and drink. These campaigns help lay the groundwork for long-term market development.
The first step for any business thinking about export is to reach out for support. The Export Cluster exists to help businesses access training, understand new markets, and make informed decisions about where and how to sell. There is no quick fix – exporting takes time, investment, and a long-term strategy – but the rewards can be significant. With the right approach, Welsh food and drink businesses can successfully break into new markets and build a strong international reputation.
