Reading, UK: Full implementation of the new Border Target Operating Model at the end of the month will increase food prices and reduce consumer choice, warns the Cold Chain Federation. It is urging Defra to postpone implementation until October and use the delay to address serious issues in consultation with the food logistics industry.
The Cold Chain Federation has written to the Steve Barclay at Defra warning of the anticipated effect of the the border control model including uncertain costs and delays for businesses in the food supply chain as a result of the recently introduced common user charges. It also questioned the readiness of border control post sites due to staffing shortages and unfinished infrastructure.
The letter also raised concerns about the disruption of impractical 24-hour notification requirements for the ‘groupage’ model, crucial for many small producers and retailers.
Phil Pluck, chief executive, Cold Chain Federation, said: “Even before its full implementation, it’s becoming evident that BTOM is a broken model; the CCF and its members will help the government get this right. Without listening to the experts, the government will seriously damage business confidence in the UK and add costs to consumers’ weekly shop. Temperature-controlled logistics operators are working hard to adapt to BTOM but we need better collaboration with government and EU partners to ensure a smooth transition that safeguards food safety, minimises disruption, and protects consumer interests.”
The Cold Chain Federation’s letter to the Defra secretary asks for:
- a review of BCP readiness
- an assessment of operational capacity of all border control posts
- an expanded Trusted Trader Scheme to support the smooth operation of Border Target Operating Model for medium-risk goods.
- transparency on costs and benefits with the government disclosing the costs of Border Target Operating Model and calculations for the predicted impact on food inflation.
The new Brexit checks could costs UK business £2bn and fuel inflation, according to a report by Allianz. It says the checks would affect £21bn of agricultural product imports, including eggs, live trees and plants, meat and fish, covering about 3% of all UK imports, the equivalent to adding a 10% tariff on these imports. Last October, the government estimated that the additional checks would cost businesses an extra £330m a year, and add less than 0.2 percentage points to food inflation over three years.
The Allianz report found the inflationary pressures from the new checks would be tempered by a two-year suspension of tariffs on goods not covered by free trade agreements, which would cut import costs by £7bn. This included some agricultural products but also cars, fuels, metals and other non-food goods. Phil Pluck, chief executive, Cold Chain Federation, said that even before it was implemented it was “becoming evident that the border model was broken”.
A government spokesperson said: “We do not recognise these figures. These checks will have a minimal impact on food prices and consumers, while saving traders and businesses around £520m each year compared to the model originally proposed.”
