>>Why aren’t more British companies exporting asks David McNair, Chief Executive, Food from Britain

There are still food and drink organisations that are confining the application of their hard-won business edge to the intensively competitive UK market - where margins are under pressure, price competition is increasing and growth opportunities are harder to come by.

UK food and drink producers are renowned for their innovation and quality in many markets around the world. This richness and diversity is clearly demonstrated by the range of innovative companies operating across the food chain. And developing sectors such as chilled distribution, ethnic foods and own label products are just a few of the areas where UK suppliers are in demand overseas.

So given this opportunity and reputation, why aren’t more companies looking beyond the white cliffs of Dover? Especially when confining such strengths to the UK market means they are in danger of restricting their return on investment funds, failing to spread business risk and making themselves vulnerable to imported products.

International trade is becoming increasingly open, not just within the EU but throughout the rest of the world, and more companies, not just in the UK, are taking advantage of this.

Latest figures issued this week reveal UK food and drink exports in 2003 were up 10% on the previous year, with EU markets valued at £6,214.5m while non-EU markets in 2003 were £3,622.4m.

One of the most common barriers to getting exports on to a UK board’s agenda, especially from larger manufacturers, is the worry that they will lose focus on their valuable UK market - that by developing relationships with international retailers they will take their eye off the ball with their UK customers and this could damage their position in their home market.

In practice, companies that have become category captains in the UK can successfully replicate similar customer relationships overseas, creating very valuable and worthwhile additional business. While UK food retailers may lack the scale of other leading worldwide retailers, they more than make up for it in innovation. It is this sought-after reputation that can open doors for their UK suppliers overseas.

The risk of putting all your eggs in one basket by trading with a limited number of retailers in one country can be spread
across a number of markets at different levels of development.

With sales up 11% within the EU zone over the last 12 months, there are certainly plenty of openings for our exporters to develop business on the continent.

One of the latest emerging trends in both retail and foodservice is food to go - an area well developed in the UK.

A visit to the European Sandwich Show showed this very much in evidence, with a plethora of chilled products and hand-held snacks on display.

Convenience was the top of the agenda, and UK companies such as Tyrells Crisps and The New Covent Garden Soup Company all saw brisk business, as did firms offering smaller ‘snack-able’ packaging formats in areas such as biscuits and drinks.

Perhaps more UK boards should see exports as a more attractive form of NPD. While UK food producers are always striving to find the latest development or new technology to secure shelf space in our home market, exports can offer a more reliable and profitable relationship through old brand development - taking proven products into new markets.

The route to export success is as individual as each company, but two key elements always remain the same: identifying key export opportunities through sound market knowledge and powering these insights through good personal on-the-ground relationships.

Our challenge surely has to be not just to get exporting on to the board agenda, but to make sure it becomes a permanent fixture.