Reading, UK: Disruption to Christmas food trade is predicted by a survey by the Cold Chain Federation. The survey shows a third of EU food businesses supplying the UK are not ready for the looming post-Brexit rule changes.
The Cold Chain Federation warns that UK food retailers, hospitality businesses and consumers should expect significant disruption in the Christmas trading window because food producing businesses in Europe which supply into the UK are unaware of, and unprepared for, the post-Brexit customs changes coming into force on 31 October 2023.
A new Cold Chain Federation survey shows the concerning lack of preparedness of food producing businesses in Europe that currently supply goods to the UK, with 39% of the food producing businesses surveyed not aware of the new rules and timeframes announced by 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, from 31 October. 41% of survey respondents said they do not have plans in place to ensure compliance with this crucial requirement.
Shane Brennan, chief executive, 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 31st 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.
Survey Respondents:
- 97% of respondents currently supply food goods to the UK and countries from which they dispatch goods included all countries in the European Union except Luxembourg. Some respondents covered more than one country, the main countries from which the surveyed companies collect or dispatch goods were France 36%, Italy 35%, Spain 27% and Germany 17%
- 24% of the companies surveyed were primarily involved in supply of meat goods, 28% dairy, 15% fish and 33% other. Of the companies surveyed 61% had a businesses importing goods to the UK valued at less than 1 million euro, 22% less than 5 million euro and 17% more than 5 million euro
- 26% of the companies surveyed do not currently export to any other countries outside the EU single market and the UK. Of the companies surveyed, 71% report that sales to the UK represent less than 10% of their overall sales volume, 15% report that it makes up less than 50% and 14% report it constitutes more than 50% of their sales volumes.
