Food industry warns of new Brexit border regulations that will affect UK supply chains

The food industry in Europe and UK has warned of a possible disruption to the supply chain as Britain implements new border bureaucracy for EU imports and food.

From January 31, the introduction of complicated paperwork for certifying all EU products with plant and animal origins entering the UK could disrupt the supply of many products. This includes pork, sugared liquid egg used in cakes and sauces and even sugared liquid eggs.

The lack of veterinarians on the continent to sign export health certifications, the inability to introduce the trusted trader program fully, and the continued lack of clarity regarding the application of certain rules and regulations all increased the risk of disruption, they said.

The entire EHC system is based on the stuff that arrives on a slow ship from China. “It is not designed for a short shelf-life and quick supply chain,” said Karin Goodburn. She represents some of UK’s largest chilled food manufacturers.

She said that her members are “deeply worried” about the impact border delays have on perishable goods, where shelf life is critical to their value.

Physical inspections will begin at the end of April. This is the first time that European companies have had to deal with border bureaucracy since the EU-UK post Brexit trade agreement came into effect in January 2021.

The British government has repeatedly delayed the introduction of border checks since 2021. However, it now claims that the border is necessary to deliver biosecurity as well as level the playing fields for British businesses in their interactions with Europe.

The UK meat industry imports 50% of its pork from Europe and is concerned that there are no official veterinarians on key markets like Germany and Italy, who can sign off on consignments.

The British Meat Processors Association stated that the British love for particular cuts of meat, such as bacon, has made the country dependent on the EU to supply more than 700,000.0 tonnes of pork each year.

“That volume means we are highly dependent on imports for market balance. If there is any delay there will be shortages,” said Peter Hardwick, trade policy adviser for the BMPA.
Hardwick said that Germany, which is the UK’s second-largest pork supplier in the EU, was at risk due to its bureaucratic approach.

The introduction of EHCs . . The rural affairs ministry of Baden-Wurttemberg, in the state’s south-west, said that the situation was causing serious problems for both the affected companies and the authorities.

The Agriculture Ministry of North Rhine-Westphalia, a western state in Germany, said that the new border regulations “created challenges and increased work for the relevant veterinary authority”.

Confagricoltura, the Italian trade association for agrifoods, said that the British held seminars in order to help prepare Italian exporters so they could cope with the new system. However, it warned the lack of capacity might make the transition difficult.

Cristina Tinelli is the director of EU Relations and International Affairs at Confagricoltura. She said: “The official vets already have a lot to do and we are so busy. This doesn’t help.” “We will eventually be able do everything we can to comply, but it won’t easy,” said Cristina Tinelli, Confagricoltura’s director of EU relations and international affairs.

Hardwick said that BMPA members raised concerns about Ireland, a major UK beef supplier, not being able to provide vets to industry on weekends. Some members warned that they may have to shut factories for two days a weeks if this issue is not resolved.

The Chilled Food Association warned that UK health certifications do not always match the industry requirements. This means that products like liquid eggs mixed in sugar — an important ingredient for food businesses — won’t be allowed into the UK.
According to the CFA’s letter sent to Stephen Barclay (the environment, food, and rural affairs minister), the UK will import more than 40,000 tons of liquid eggs in 2022. If the certificates aren’t amended, food businesses may face shortages.

The CFA stated that “British Food Businesses producing desserts, sauces, mayonnaise and baked goods will not have enough supply to continue to manufacture these foods as well as other foods using it.”

EU and UK industry bodies have warned that new border paperwork will increase costs for consumers. Last October , the government estimated that paperwork would add 0.2% to inflation and cost businesses £330mn per year.

The cost of each border inspection has not been announced by the government, but it is estimated to be as high as £43 for a single consignment, and a single truck could contain multiple consignments.

Coldiretti, the Italian agricultural association, expressed concern about the possibility of a flat charge for all products arriving, “regardless if they have been inspected or otherwise”.

CFA estimates that the food industry spent £170mn since 2021 on more than 850 000 EU export health certificates charges. This does not include additional costs for business management and oversight.

Arne Miedlken, customs expert and managing Director of Customs Manager (a trade facilitation company), said that European companies sending goods into the UK will try to pass the cost of new border requirements onto their British customers who, in turn, will pass this cost on to consumers.

He said, “Your prices will go up.” If you have ever been to Switzerland, and wondered why things are so expensive there, we invite you to see what we’ve created.

The industry has also complained of poor management by Whitehall in the new border control system, including poor communication and changes made at the last minute to the rules.

The UK’s flower and horticulture sector has warned that physical border inspections will be introduced in April. This is due to a shortage of capacity at border post.

The UK Food Department last week, in an unexpected move, reclassified several fruit and vegetable products from low-risk to medium-risk. This means that fruits and vegetables such as avocados, carrots, and apples will all be subjected to physical border checks alongside animal products. Officials have not yet announced when the physical checks will start.

Marco Forgione said the lack of communication by the government regarding the reclassification is “not very encouraging”.

He said: “Business leaders have expressed to me their frustration at the fact that their preparation efforts were undermined by a lack clear communication.”

Cabinet Office, the agency responsible for the implementation of the new border, has said that it consulted with the industry extensively and is introducing the additional controls gradually to allow businesses time to adapt.

The department said that the changes it is implementing will keep the UK safe and protect our food supply chain as well as our agricultural sector against disease outbreaks which could cause economic damage.