Weaker import demand
Weaker import demand from the UK from 2017 can thus be
expected to impact negatively on the German food industry to some extent via the trade channel; however, this would probably
be cushioned by the sector’ s comparatively low export focus
(ratio of foreign sales in 2015: just under 23%) .
Experience from
previous phases of uncertainty also shows that consumers remain
loyal to well-known brands which provide good quality and a
favourable price-performance ratio. This will also be of benefit to
the German food industry in terms of the products it supplies to the
UK – despite the uncertainty in the UK surrounding the economic
consequences of the vote – provided the withdrawal negotiations
do not lead to any loss of trademark rights.
The UK accounts for a small proportion – recently around
2%– of food and animal feed imports from all countries. It is not
one of the most important countries of origin in any of the major
product groups.
However, based on the high levels of imports of
wine and spirits, beverages account for an above-average 6% of
goods imported from the United Kingdom. Generally speaking,
UK– imports are unlikely to exert pressure – via the exchange rate
effect – on food products manufactured in, or imported into Ger-
many as a result of Brexit.
EU Forecast
euf:b.a18b:197/nws-01