Representatives of Britain’s fresh produce industry are afraid that the post-Brexit border strategy risks further pushing up UK food prices. Traders in the food supply chain are warning they will not be able to absorb the extra cost of charges levied for import checks on goods entering the country from the EU and the rest of the world, which will be introduced in the new year.
The estimated additional annual costs of more than £10 mln, stemming from import charges, would have to be passed on to consumers. This would fuel food inflation just as prices are thought to have peaked.
The Fresh Produce Consortium has written to ministers to share its members’ concerns about the UK’s post-Brexit border strategy. In a highly critical submission to the government, the FPC accused ministers of adopting “an outdated and highly inefficient border solution which fails to meet the needs of a modern progressive industry and simply adds cost for consumers”.
The FPC’s letter took aim at the government’s pro-Brexit border strategy. Among the proposals, the government wants to introduce a £43 charge for each consignment, payable from January next year. The extra burden would risk exacerbating an already challenging outlook for food prices.
Although grocery price inflation fell to its lowest level in the year last month, the reading of 16.5 per cent was still the sixth highest since 2008.
Source: fpcfreshtalkdaily.co.uk