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Home»Business»Investing
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Brexit border checks: UK prepares for limited options and increased costs on food imports

April 30, 2024No Comments3 Mins Read
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The United Kingdom heavily relies on the European Union for fresh fruit and vegetables, and this dependency has not changed since Britain left the EU in 2020. New post-Brexit physical inspections of plant and animal imports from the EU are set to begin, affecting products such as meat, cheese, fish, and eventually fruits and vegetables. The introduction of these inspections, along with hefty new charges on some imported food products, threatens to reduce consumer choice and push up prices.

The UK’s food import regime post-Brexit highlights the border bureaucracy that UK and EU businesses must now navigate. Before Brexit, the UK had unencumbered access to a variety of food products from neighboring EU countries, and a steady stream of agricultural workers from the EU benefited British farmers. However, in the post-Brexit world, the UK’s food supply is more vulnerable to external shocks, and labor shortages have caused issues for local farmers, including crops rotting due to a lack of workers for harvesting.

The additional red tape and costs associated with the new border measures could mean thousands of pounds in extra costs for businesses each month, resulting in reduced shelf-life of perishable products and increased food waste. The UK government insists that the new controls are crucial for biosecurity and will be phased in gradually, starting with high-risk goods like live animals. The government estimates that the new checks will cost British businesses about £330 million annually and increase food inflation.

The heavy reliance on food imports from the EU, particularly for fresh produce, has raised concerns about potential price increases and decreased choice for consumers. The British Retail Consortium believes that any additional costs from new checks are unlikely to result in significant price rises due to the size of the food market in the UK. However, smooth implementation of border checks will be crucial to avoiding delays and availability issues, especially as trucks arriving from the EU will now be directed inland for physical inspections.

Brexit has highlighted the UK’s vulnerability in terms of food imports, with significant percentages of fresh vegetables and fruit coming from the EU. The reliance on imports has previously caused shortages in the UK due to weather conditions in supplier countries. While the UK has the potential to increase domestic production of fresh produce, the end of free movement of EU workers post-Brexit has posed challenges for British farmers who relied on this workforce.

Brexit has also led to the UK signing free trade deals with countries like Australia and New Zealand, providing them with tariff-free access to British supermarket shelves. UK farmers have faced challenges due to rising input costs and supermarket pricing strategies that favor imports over domestic produce. The government has initiated a review to address fairness in the supply chain for fresh produce, as farmers express concerns about the future of agriculture post-Brexit and the need for long-term strategies to ensure food security.

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