"The food and drink industry has weathered the recession best of all manufacturing sectors and appears to have continuing strength in R&D. However, a widening trade deficit and few UK brand name producers are causes for concern."

An ongoing demonstrable commitment to innovation and high-value production are key reasons why the UK’s food and drink industry has emerged from recession in better shape than many other manufacturing sectors, according to a new report from the IfM.

From May 2008 to May 2009, the production index for food and drink fell by only 1.9 compared to 13.1 for manufacturing overall – a clear indication of the industry’s resilience

The report was commissioned by the Food and Drink Federation.

Report author Finbarr Livesey, head of the IfM's Centre for Industry and Government, said: "The food and drink industry has weathered the recession best of all manufacturing sectors and appears to have continuing strength in R&D. However, a widening trade deficit and few UK brand name producers are causes for concern. The sector will be a bellweather for changes to come, as the industry addresses environmental and health issues, two areas intimately related to food production.”

Among the reports findings were that the sector spends £1.1bn on R&D and nearly 40% of UK food and drink manufacturers plan to increase investment in production and research and design over 3-5 years.

Responding, Melanie Leech, FDF Director General, said: “As Government builds the strategy for economic recovery, this report provides a timely reminder of the important financial, strategic and social contribution of the UK’s biggest manufacturing sector. " 

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