New research from Lloyds Bank revealed fod and drdink firms had forecast growth of 19% over the next five years as people shrugged off fears Brexit could put the brakes on growth.
Analysts said the research showed the uncertainty surrounding Brexit had done nothing to temper the ambitions of the growing United Kingdom food and drink sector which was on course to create 75,000 new jobs by 2021.
Farm leaders claimed a burgeoning food and drink sector could allow farmers to piggyback on increased demand as new growth markets emerged.
The research, which provided the first snapshot of the sector following the UK decision to leave the European Union, revealed 44% were going to invest more in their businesses post-Brexit compared to 22% who said it had fallen.
A third of firms had increased plans for research and development with just 17% revising their plans down.
National Farmers Union economist Lucia Zitti said the farming industry was determined to seize the historical opportunity.
“It is crucial that we halp shape a new vision for an agricultural policy which ensure a dynamic, profitable and productive future for farming and growing.”
Lloyds surveyed food and drink producers in England and Wales and analysed the opportunities and challenges the sector faced.
Agriculture and Horticulture Development Board market specialist Stephen Howarth cautiously welcomed the findings, adding businesses were assuming a best-case scenario.
“If we are in the single market and have more freedom then I do not see why it could not be a positive outcome.
“But I could also paint a scenario which is quite differing. I understand businesses want to be bullish and stay positive.
“Impartial of the situation, you can only say things are uncertain,” he said.
The Brexit decision had also led to a change in export strategy with the number of firms targeting western Europe falling from 60% to 47% this year.
However, more businesses now intended to target eastern Europe and Russia.
Lloyds agriculture head Andrew Naylor said “This report holds some key clues for the farming industry about where is main customer, our food and drink sector, is heading.
“But while more businesses see provenance as a challenge rather than an opportunity, the proportion which think English and Welsh produce has a good international reputation held firm at 86%.”
