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Food industry bodies in Europe and the UK are warning of impending supply chain disruption as Britain introduces new border bureaucracy on EU food and drink and imports for the first time since Brexit.
The introduction of complex paperwork to certify all EU products of plant and animal origin entering the UK from January 31 risks fouling up the supply of a number of products, including pork and sugared liquid eggs used in cake and sauces.
A shortage of vets to sign export health certificates on the continent, the failure to fully introduce a trusted trader scheme and continued lack of clarity about the application of some rules and regulations were heightening the risk of disruptions, they added.
“The entire EHC [system] is based on stuff arriving on a slow boat from China. It is not designed for short shelf life and quick supply chains,” said Karin Goodburn, director-general of the Chilled Food Association, which represents some of the UK biggest chilled food manufacturers.
She added that her members were “deeply concerned” about the impact of border delays on perishable products where shelf life was critical to their value.
The introduction of the new border controls, with physical inspection beginning from the end of April, will see European companies facing the pain of border bureaucracy for the first time since the EU-UK post-Brexit trade deal came into force in January 2021.
The British government has delayed the introduction of the checks five times since 2021, but now says the border is essential to both deliver biosecurity and level the playing field for British business in its interactions with Europe.
The UK meat industry, which imports 50 per cent of its pork from Europe, said it was particularly concerned about the lack of official veterinarians in key markets such are German and Italy who are licensed to sign off consignments.
The British Meat Processors Association said that British love of particular cuts of pork, including bacon, made the country reliant on the EU for more than 700,000 tonnes of pork meat every 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.
Germany, the second largest EU supplier of pork to the UK, was a particular area of risk because of the bureaucratic approach taken by its government-run veterinary service, Hardwick added.
Several German state authorities contacted by the Financial Times warned of the difficulties created by the new system.
“The introduction of EHCs . . . is creating serious difficulties for the companies concerned, as well as the relevant authorities,” the rural affairs ministry for the south-western state of Baden-Württemberg’s ministry said in a statement.
The agriculture ministry of the western state of North Rhine-Westphalia said the new border rules were “leading to challenges and more work for the relevant veterinary authorities”.
The Italian agrifoods trade association Confagricoltura said the British had held seminars to try to prepare Italian exporters to cope with the new system, but warned a lack of capacity would mean the transition could be rocky.
“The official vets are already busy and we have so many controls, and this is something that doesn’t help,” said Cristina Tinelli, Confagricoltura’s director of EU relations and international affairs. “In the end, we will be able to do everything to comply but it won’t be easy.”
Hardwick added that BMPA members had raised concerns that Ireland, a key UK supplier of beef, would not be able to supply vets for industry at weekends, with some members warning they might have to close factories two days a week if the issue was not addressed.
The Chilled Food Association has warned that UK health certificates do not always match industry requirements meaning that products such as liquid eggs mixed with sugar — a key ingredient for food businesses — will no longer be allowed to enter the UK.
In 2022 the UK imported more than 40,000 tonnes of liquid eggs from the EU, according to the CFA, which has warned in a letter to Stephen Barclay, the environment, food and rural affairs secretary, that food businesses will face shortages if the certificates are not amended.
“British food businesses producing, for example desserts, mayonnaise, sauces, baked goods, will have insufficient supply to continue to produce these and other foods using them,” the CFA wrote.
Both EU and UK industries bodies have also warned that the new border paperwork and inspections will drive up costs for consumers. The government said last October that it estimated the paperwork would cost businesses £330mn a year and add 0.2 per cent to inflation over three years.
The government has still not announced the final cost to business for each border inspection, but said it could be up to £43 per individual consignment of a good, with a single lorry potentially containing multiple consignments.
The Italian agribusiness association, Coldiretti, said it was concerned about the prospect of a “flat charge” for all incoming products, “regardless of whether they are inspected or not”.
The CFA has estimated that since 2021 its members have spent a total of £170mn on more than 850,000 EU export health certificate charges, a sum that does not include the additional costs to business for management and oversight.
Arne Mielken, a customs expert and managing director of trade facilitation business Customs Manager, said European companies sending goods to the UK would try to pass on the cost of the new border requirements on to their British customers, who would in turn pass on that cost to the consumer.
“Your prices are going to go up,” he said. “If you’ve been to Switzerland and wondered why everything is so expensive, welcome to what we have created here.”
Industry has also complained about the weak Whitehall management of the new border controls, with poor communications and last minute changes to rules and regulations and the failure to get trusted trader schemes fully operational.
The flower and horticulture industry in both the UK and the EU has already warned that the introduction of physical border inspections in April is an “accident waiting to happen” because of a lack of capacity at border posts.
Adding to the confusion, the UK food department last week unexpectedly reclassified a range of fruit and vegetables from low to medium risk, meaning that produce such as apples, carrots and avocados will be subject to physical checks at the border alongside animal products. However, officials have not said when the checks will begin.
Marco Forgione, director-general of the Institute of Export & International Trade, said that the lack of communication from the government around the reclassification was “not very encouraging”.
“Business leaders have revealed to me their frustration that their preparation efforts are undermined because of a lack of clear communication,” he said.
The Cabinet Office, which is responsible for implementing the new border, said it had consulted extensively with industry and was phasing in the extra controls progressively to give business time to adapt.
“The changes we’re bringing in will help keep the UK safe, while protecting our food supply chains and our agricultural sector from disease outbreaks that would cause significant economic harm,” the department added.
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