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Tuesday, April 30, 2024

Britain braces for Brexit checks on food imports

 

The United Kingdom's departure from the European Union has led to significant changes in the country's food supply chain. As of April 30, 2024, new post-Brexit border checks on food imports from the EU will come into effect, potentially increasing prices and reducing consumer choice.
The UK relies heavily on the EU for fresh fruit and vegetables, with around 40% of fresh vegetables and 28% of fresh fruit coming from the EU in 2022. The new border checks will apply to products such as meat, cheese, and some fish, with spot checks on plant and animal imports from the EU. This will lead to additional costs for businesses, which could be passed on to consumers.
Industry groups have warned that the new checks could add thousands of pounds in extra costs each month for businesses, leading to higher prices and reduced consumer choice. The Cold Chain Federation estimates that the new border measures could add over £1 billion ($1.3 billion) a year in costs to firms trading perishable produce.
The UK government has stated that the new controls are crucial to ensure biosecurity and that checks will be phased in "in a sensible and controlled way." However, businesses and industry groups are concerned about the potential impact on food prices and availability.
The new border checks will also affect small and medium-sized enterprises operating in the food retail sector, such as small garden centers, restaurants, and delicatessens. These businesses may struggle to absorb the additional costs, potentially leading to reduced consumer choice and higher prices.
The UK's reliance on food imports from the EU has been highlighted as a potential vulnerability in the country's food supply chain. The UK already uses around 70% of its land for agriculture, but experts say there is scope to grow more of its own fresh produce.
However, Brexit has also led to the end of the free movement of EU workers, who were previously employed in the agricultural sector. This has led to concerns about the availability of seasonal workers for farming, with many farmers unsure about their workforce for 2025.
The UK government has agreed to free trade deals with Australia and New Zealand, which will allow countries with larger and more cost-effective agricultural industries tariff-free access to British supermarket shelves. This has raised concerns among UK farmers, who feel that they are being sold down the line and used as a bargaining chip in trade talks.
In addition to Brexit-related challenges, UK farmers have been squeezed by soaring input costs, including fertilizer, energy, and labor. Supermarkets have often been unwilling to pay local producers more, opting instead for imports to keep their prices low.
The UK government has launched a review to "increase fairness" in the supply chain for fresh produce, which will probe contractual arrangements between UK producers and retailers. However, some farmers feel that more needs to be done to support the industry and ensure fair food prices.
In conclusion, the new post-Brexit border checks on food imports from the EU have the potential to increase prices and reduce consumer choice in the UK. The country's reliance on food imports from the EU has been highlighted as a potential vulnerability in the food supply chain, and the end of the free movement of EU workers has led to concerns about the availability of seasonal workers for farming. The UK government's free trade deals with Australia and New Zealand have also raised concerns among UK farmers, who feel that they are being sold down the line and used as a bargaining chip in trade talks.

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