Post Brexit: Fresh Food Supply Problem

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The British Retail Consortium (BRC) warned shoppers about the supply issues that will take place in next January unless there is a massive upgrade in border facilities.

Border checks could quickly cause delays at channel ports of thousands of trucks, including those with fresh food. Although the officials said it is enough time for firms to prepare for the changes, the government will have to act fast to place the necessary border infrastructure and staff to cope with those checks by the end of this year, BRC said.

BRC’s director of food and sustainability Andrew Opie warned that consumers in the UK will face significant disruption especially in the availability of fresh fruit and vegetables. When the situation hits in January, the peak import season for fresh food, customers will see the problems on supermarket shelves unless the infrastructure is placed. He explained that with enormous bureaucracy and enormous change, there is a crucial problem with the infrastructure at the key point around the channel as there is not any room to hold thousands of vehicles every day.

The warning came after Cabinet Minister Michael Gove said that the UK is outside the single market and outside the customs union, so the UK will have to get ready for the customs procedures and regulations checks as the border checks are “inevitable”.

The Brexit transition period is due to end on 31 December 2020. From then, the government confirmed plans to introduce import controls at the border which would lead the EU and UK traders to extra paperwork. From next January, all traders will have to fill out customs declarations and be liable to customs checks on goods for cross-channel trade. Moreover, with the new customs infrastructure, facilities and systems as well as staff, agents and verts will have to be in place by the end of this year. In case of a no trade deal with the EU, tariffs will also need to be charged and collected.

The British Chambers of Commerce (BCC) said that for many businesses, border delays would cost the businesses more than tariffs. The BCC director general, Adam Marshall, said additional friction will equal higher costs for many of the business and while most of the discussion over the past few months focused on tariffs, the actual biggest source of cost would be border costs.

Multiple industries from food distributors to car manufacturers, which rely on the friction-less free flow of goods would now face extra costs, delays and red tape from what are known as non-tariff barriers.

By Amy Lee