China deal delivers £100m boost for UK farmers

The growing demand for beers and ales in China has led to a trade deal worth up to £100m for British barley producers.

An announcement today (November 12) from Environment Secretary Elizabeth Truss revealed that UK farmers will reap the benefits of a new landmark agreement that could see around 750k tonnes of British barley exported to breweries in China between now and 2020.

The Environment Secretary is this week leading a delegation of 80 businesses from the UK’s food and drink sector on a Chinese trade mission, believed to be the largest of its kind to date, to drive exports to one of the world’s largest economies.

Elizabeth Truss welcomed the deal during a visit to The Brew in Shanghai, one of a number of new microbreweries to open across the country.

The Environment Secretary said: “British beer has a worldwide reputation and we’ve had huge successes selling more than a billion pints of our quality lager and stout around the world, building a stronger economy for the UK.

“Ilkley Brewery in Yorkshire is an excellent example of a growing British company tapping into this global market.”

She continued: I want to make sure British businesses seize the vast opportunities available in China, the world’s biggest food and drink market.“

Today, China is the world’s biggest beer-drinking country, with 54bn litres consumed every year. In comparison, the US drinks 24bn litres a year and Germany just 9bn.

Jane King, the chief executive of the Agriculture and Horticulture Development Board (AHDB) worked with the Department for Environment, Food & Rural Affairs to land the multi-million pound agreement.

Jane commented: “This deal represents a vast amount of work by AHDB and its partners and a huge opportunity for farmers in the UK.

“Our staff have worked very hard on levy payers’ behalf to get this protocol off the ground, and we look forward to seeing companies making the most of this new market access.”

China is one of the UK’s most important export destinations. Last year, more than £280m in British food and drink was exported to the Eastern superstate, up from £136m in 2012.

In total, UK food and drink exports amounted to almost £19bn in 2014, up by £1.2bn in the last five years. The industry is estimated to contribute £103bn to the economy and employ 12.5% of the UK population.

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