Brexit’s bureaucratic aftermath could trigger a bleak winter for UK supermarkets, warn food industry leaders.
They fear escalating food prices and potential shortages as a consequence of new red tape for EU imports.
Food industry stalwarts express concern that port authorities might be ill-equipped to handle an array of checks, inclusive of health certifications for certain animal, plant and food products from the EU.
These checks are set to commence in October 2023, as part of the Brexit deal arranged by Prime Minister Boris Johnson and Brussels.
Furthermore, new levies on goods imported from the EU could inflate the cost of each lorry-load of produce by hundreds of pounds, insiders revealed to The Independent.
This added financial strain could potentially cripple smaller firms.
Brexit Red Tape and the Impact on SMEs
The British Retail Consortium (BRC), the representative body for UK’s largest supermarkets, voices concern that this latest wave of post-Brexit paperwork could disrupt operations at Dover and other ports.
This, in turn, could cause scarcities of fruits and vegetables on supermarket shelves.
Andrew Opie, BRC’s Director of Food and Sustainability, informed The Independent about potential supply disruptions due to delayed deliveries, and potential price hikes as companies pass on the additional costs to customers.
“The key focus must be getting European supply chains and UK government checks ready for October, to avoid disruption at our ports.”
Given the short shelf-life of fresh produce imported from Europe in the autumn, a seamless system from day one is critical to prevent consumer impact, he added.
Supermarkets urge the government to provide maximum support to ports in preparation for the new checks.
Additional Paperwork and Fees for Small Businesses
Nick Allen, CEO of the British Meat Processors Association, warns that the additional paperwork and fees might cause smaller, specialist importers to “struggle to survive“.
Mr Allen predicts a decline in choice, and some businesses may have to alter their business model to stay afloat.
He hopes for a new veterinary standards deal with Brussels to eliminate the requirement for health checks on goods, adding, “Some exporters in the EU won’t bother to send stuff here because they will find other markets.”
Port inspection fees for each batch of goods will range between £23 and £43, but health certification paperwork could add “hundreds of pounds” to each lorry-load of produce.
These added costs will ultimately mean higher prices in shops, leading to food inflation.
Physical checks on agricultural food imports are set to begin in January 2024 before new safety and security declarations for all imports from Europe come into force in October of the same year.
The government’s new “border target operating model” aims to mitigate some of the extra costs to businesses by around £400m a year.
Will Companies Be Able to Afford Brexit Import Fees?
Even non-food sector businesses are anxious about increased red tape on imports starting in 2024.
Tamara Cincik, founder of the Fashion Roundtable think tank, warns that many clothing firms “cannot absorb the extra costs of even more checks”.
Research by the Federation of Small Businesses shows that nearly 10% of UK firms that used to import or export have ceased doing so in the past five years.
With Brexit-induced changes on the horizon, the government is being urged to “minimise costs and disruption”.
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