"The biggest challenge for agri-food companies exporting to the UK is coming after July 1," says Ward Verberck of VLAM, who was appointed by VLAM last year as Brexit advisor to support Belgian export companies deal with the consequences of Brexit.
"So far, most of the problems I've seen companies having have been related to administrative adjustments (customs, logistics, packaging, etc.), but as of July, submitting a phytosanitary certificate will become mandatory, and this is going to be both practically and administratively challenging."
"This sector obviously has to rely on its flexibility," says Ward. "Until now, customers have been able to call after 12 o'clock to say they need some goods and have it handled in the same day. Soon you'll see that because of the administrative tasks involved, they will have to wait until the next day. This has left companies with the question: do we adapt, or do we switch to other markets than the UK? Some companies that traded with the UK occasionally have stopped doing so, also because of the additional costs. However, companies for which it is an important market have adapted. The big companies are growing bigger as a result, so the supply will also be a bit scarcer. This can put some pressure on prices."
Good preparation
The best advice Ward can give in this regard is to be well-prepared: to keep yourself well-informed, and pursue good coordination between importing and exporting parties. "It's just important to be aware of all the duties that will come with exporting. That's what I'm there for, too. Now, many companies in the Netherlands and Belgium are familiar with the administrative tasks involved in exporting outside the EU, so they will certainly adapt to it with exports to the UK, as well. Moreover, the implementation date has already been postponed several times, so many have already made the preparations at an earlier stage. Those for whom it was new are having more difficulty with it. However, I would advise all companies to at least carry out some trials as far as exports are concerned."
Initial problems
Ward still foresees there will be problems in the first few months. "There will always be problems in the early stages. When the phytosanitary certificate became mandatory for ornamental plant cultivation in early 2021, it also took time to get it all under control. However, those problems have largely been overcome. It will be no different for the agrifood sector. Moreover, we can learn from the experience of the ornamental plant sector. It will be an exciting time for all parties after 1 July, but the preparations have been made. Extra staff will be hired for the inspections, but we'll have to wait and see how things pan out when the time comes."
From the UK side, there will undoubtedly also be some getting used to. "Groupage, for example, especially for small companies, is going to be tricky. A truck with 32 pallets will of course also have to have 32 certificates to be checked. This will lead to quite a few frustrations, but it is in the nature of this sector to find solutions." In addition to advising, Ward is also looking for solutions to structural problems that could jeopardize exports. "Together with various partners, we are looking at how we can streamline this optimally."
In terms of physical checks, Ward expects few problems. "Of course they are not going to physically check all goods, otherwise you'll get long queues. Transit time is very important, especially for perishable goods such as fruit and vegetables. Of course it will be a challenge to make everything run as smoothly as possible and to get the goods on the spot, but they will do everything they can in the UK. Nobody wants empty shelves in the supermarkets. For companies where the paperwork is always in order, the checks will go smoothly. Others will be stricter," predicts Ward.
For more information:
Ward Verberck
VLAM
+32(0)473 269 472
Ward.verberck@vlam.be