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Wednesday, May 10, 2023

Are we looking at more empty shelves in the autumn?

The Independent reports on the fear of industry bosses that new Brexit red tape on EU imports could push up food prices and see more shortages in the supermarkets.

They say that food sector leaders are worried that port authorities are unprepared for the implementation of a series of checks, including health certifications on some animal, plant and food products from the EU, that are set to be phased in from October 2023 under Boris Johnson’s exit deal with Brussels:

New fees on goods coming into Britain from the EU will also add “hundreds of pounds” to the cost of importing each lorry-load of produce, business leaders told The Independent – a burden that could see some small firms “struggle to survive”.

The British Retail Consortium (BRC), which represents Britain’s biggest supermarkets, is concerned that the next wave of post-Brexit bureaucracy will see disruption at Dover and other ports, which could in turn lead to gaps in fruit and vegetables on the shelves.

Andrew Opie, the BRC’s director of food and sustainability, told The Independent that the extra checks could hit supply by delaying deliveries, and could also push up food prices as businesses pass on the additional costs to shoppers.

He said extra costs “are always an issue when we are tackling inflation”, but warned that “the main impact [of checks] could be on availability [of goods] if there is disruption at the ports”.

Mr Opie added: “In the autumn we increase imports of fresh produce from Europe that has a short shelf life, so it is imperative the system works well from day one to avoid impact on customers.”

Supermarkets are urging the government to provide ports with as much support as possible to prepare for the new checks. “Unfortunately, there is a cost – that was an inevitable consequence of Brexit,” said Mr Opie.

The retail expert added: “The key focus, however, must be getting European supply chains and UK government checks ready for October, to avoid disruption at our ports.”

Mr Opie will apprise peers of the ongoing post-Brexit problems for the food industry when he appears at the House of Lords committee hearing on the Northern Ireland protocol on Wednesday.

The warning comes after severe shortages of tomatoes, peppers and other salad vegetables earlier this year forced Britain’s major supermarkets to restrict sales, with photos of empty shelves mocked by people living in Europe.

Amid fears that shortages could become even more common, the government has warned business bosses that new checks on imports from the EU will add around £400m a year in extra costs – which is down from an initial estimate of just over £800m.

Nick Allen, chief executive of the British Meat Processors Association, told The Independent that the extra burden of new paperwork and fees will see some small, specialist importers “struggle to survive”.

“What we’ll see is a decline in choice, because some of the smaller firms importing specialist products – bacon, ham, cheeses – that part of the business will fall by the wayside. Some will have to change their business model to survive,” he said.

Mr Allen – who wants a new veterinary standards deal to be established with Brussels in order to scrap the required health checks on goods – added: “Some exporters in the EU won’t bother to send stuff here because they will find other markets.”

Food sector chiefs have been told that inspection fees at ports will be between £23 and £43 for each batch of goods. But getting the extra health certification paperwork could run into “hundreds of pounds” for each lorry-load of produce, one food sector leader told The Independent.

Mr Allen said suppliers will have to pass on some of those extra costs – meaning higher prices in shops. “It will add to food inflation. At a time when it’s real struggle for families, it won’t make things any easier,” he said.

Empty supermarket shelves and highewr prices - that wasn't on the side of the Brexit bus.
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