March 21, 2006

UK is largest European market for US agriculture

US exports of agricultural, fish and forestry products to the UK was worth US$1.47 billion in 2005, according to USDA's Mar 17 report on UK trade data.

In 2005, the UK made up 17 percent of all US exports to the EU-25, making it the largest European market for US agriculture. On a global scale, the UK was the seventh largest market for US agricultural, fish and forestry exports.

USDA outlined some of the general features of the UK market that helped to maintain US exports of agricultural, fish and forestry products. Firstly, the weakness of the dollar against the pound has increased the appeal of US product entering the UK.

Furthermore, UK consumers and retailers have a high demand for upscale, high-value food products. Additionally, consumer trends and tastes in the UK mirror some of those observed in US markets. This helps with the transfer of new product ideas to the UK market.

US exporters also view the UK market as a gateway to the wider EU market and share cultural and business values with UK importers. Lastly, the US has a comparative advantage over Northern Europe in the production of some key horticultural crops, leading to niche market opportunities.

For the full USDA report, click here.