Business, Freight News, Logistics
Five years on from Brexit: food for thought
[ January 30, 2025 // Chris Lewis ]UK food supply chains have become more vulnerable in the five years since the UK left the European Union, says sector expert at Relex Solutions, Scott Curtiss. Marking the fifth anniversary of Brexit on 31 January, he said that pressures included the greater variability of the workforce, numerous challenges in hiring and retaining staff.
At the same time the food and beverage industry has faced increased costs and regulatory complexities which have led to supply chain disruption. While the UK-EU Trade and Cooperation Agreement (TCA) provides tariff-free trade for goods meeting rules of origin requirements, many food products contain ingredients from multiple countries, making them subject to tariffs.
While this does encourage more domestic sourcing and stockpiling, in general, Brexit has exacerbated supply chain disruptions due to the customs regulations, tariffs and border checks which add complexity and delays. The food and beverages industry has been significantly affected due to the perishable nature of products and the reliance on timely imports from the EU whilst the retail industry has had to manage increased costs and delays, impacting their ability to maintain consistent stock levels.
Meanwhile, David Hooper, managing director of trade consultancy Hooper & Co, said that businesses – especially SMEs – are likely to face further issues despite showing “remarkable adaptability” since Brexit.
“UK businesses have demonstrated remarkable adaptability in the last five years, with many successfully restructuring their operations and supply chains to maintain EU market access,” he said.
“However, the British Chambers of Commerce’s research shows only 14% of exporters feel the current deal is helping them grow, highlighting the ongoing need for improved trade arrangements.
“While larger companies have generally managed to absorb the additional costs and complexity of EU trade, many SMEs continue to face significant challenges with customs procedures, documentation requirements, and regulatory compliance.”
“Some forward-thinking companies have successfully maintained their EU market presence by establishing operations within the EU. However, this adaptation strategy isn’t feasible for all businesses, particularly SMEs, and represents a significant investment that many cannot afford to make.”
The Nuneaton-based trade expert said there would likely be a number of additional headaches for smaller firms, which could be eased by improved awareness over new regulations.
He said: “The alarming lack of awareness about upcoming changes in trade rules and regulations – with over three-quarters of firms unaware of key legislation – suggests an urgent need for better government communication and support to help businesses prepare for future changes.
“The emergence of new regulatory frameworks like CBAM (Carbon Border Adjustment Mechanism) and changes to product safety regulations (GPSR) are creating additional complexity.
“There’s growing concern more broadly among businesses about the potential impact of further regulatory divergence between the UK and EU, which could create additional barriers to trade.”
He added: “While businesses recognise that rejoining the EU Single Market or Customs Union is unlikely, there are practical opportunities for regulatory alignment that could significantly reduce trade friction. For example, alignment on food safety, plant health, and animal origin product regulations could eliminate duplicate checks and controls, reducing costs and delays for businesses.
“Such targeted alignment in specific sectors could deliver tangible benefits without requiring broader institutional changes to the UK-EU relationship.”
Tags: Relex