A survey conducted by the Cold Chain Federation suggests that there could be disruption to Christmas food supplies this year after it was found that over a third of EU food businesses supplying the UK are not ready for looming post-Brexit rule changes.
The Federation is warning that UK food retailers, hospitality businesses and consumers will be impacted when customs changes come into force on 31 October 2023. Its survey showed a concerning lack of preparedness of food-producing businesses in Europe that currently supply goods to the UK, with 39% of these businesses saying they were not aware of the new rules and timeframes announced by the UK government.
In a key change under the new post-Brexit import rules, export health certificates signed by a qualified certifying officer will become mandatory for every consignment of ‘medium risk’ meat, dairy and fish products exported from the EU to the UK. 41% of survey respondents said they do not have plans in place to ensure compliance with this crucial requirement.
Shane Brennan, Chief Executive of the Cold Chain Federation, said: “It is deeply worrying that well over a third of these food producing businesses supplying into the UK are not aware that these significant changes are looming. Communications from UK Government to these businesses has not been good enough and it is the food retailers, hospitality businesses and consumers here in the UK who will pay the price with disruption, delays, and losses.
“We have written to ministers setting out our survey findings and asking for the 31 October implementation of the export health certificates to be moved back to 31st January 2024. Government must use the extra time to deliver a much wider and better resourced communications campaign, starting now, to increase awareness among EU businesses in enough time for a full implementation on 31 January next year. By then, the UK should also have a fully staffed border inspection team, enforcing the new rules but also providing support and advice for these EU importers. With so much stress, cost inflation and other pressures in the food supply chain this year, this marginal change in the implementation plans could make a big difference.”
The survey also showed that 78% of the EU-based food-producing businesses surveyed believe costs will increase to their UK customers as a result of the new rules. Brennan said: “Meeting the new export health certificate requirement will increase costs for the EU food producers supplying into the UK, even more so for businesses scrambling at the last minute. These costs will be passed onto UK retailers, ultimately leading to higher prices for UK consumers and pushing food inflation even higher.”
When asked about their intentions regarding the sale of their products to UK customers after 31 October 2023, only 60% of respondents said they plan to seek to continue their service to the same customers at the same frequency. 10% plan to reduce the frequency and range of UK-based customers they serve, 7% plan to stop altogether and 22% said they don’t know at this stage.
NAM Implications:
- Consider yourself warned…
- …five months ahead!
- Given this level of ‘unpreparedness’ and the inevitable impact on shelf prices…
- …it is probable that changes to import procedures will be delayed.
- Prepare accordingly…
