The upcoming UK general election holds significant implications for the fresh produce industry, notably through the anticipated introduction of new post-Brexit import controls and changes in the political landscape. The implementation of the Border Target Operating Model (BTOM) from 31 October 2024, reclassifying EU fruit and vegetable consignments as "medium risk," will necessitate additional paperwork and physical inspections. The Fresh Produce Consortium (FPC) predicts these measures will increase import costs by around £200 million annually, costs likely to be transferred to consumers.
Political parties' policies present varying prospects for the industry. The Conservative Party's emphasis on stringent border controls contrasts with the Labour Party's aim to reduce import costs and enhance supply chain efficiency. Additionally, immigration policies affecting seasonal worker visas are pivotal. The current government's allocation of 45,000 visas for horticultural workers in 2023 and 2024 addresses labour shortages, but may require adjustments post-election.
Industry leaders have voiced concerns over the new import controls, highlighting the potential for higher consumer prices and challenges for smaller businesses. Nigel Jenney, Chief Executive of FPC, criticized the system's feasibility, especially regarding the generation of Phytosanitary Certificates. The UK's reliance on EU imports for nearly half of its fruit and vegetable supply exacerbates these issues, with potential for increased prices, reduced availability, and higher spoilage rates.
In response, the UK government has initiated a review to promote fairness in the fresh produce supply chain and invested in agricultural innovation to support domestic production. The outcome of the UK general election will undoubtedly influence fresh produce costs and consumer prices, with the industry and consumers alike advised to monitor developments closely.
Source: fpcfreshtalkdaily.co.uk
