Anticipated post-Brexit import controls set to be implemented later this year may lead to a rise in prices for many fruits and vegetables. The government plans to introduce new paperwork requirements for EU businesses sending animal and plant products to the UK, with physical inspections starting in April.
Brexit import controls will raise prices
Concerns about potential price increases and inflation have led to five postponements of border checks since the EU–UK Trade and Cooperation Agreement took effect in January 2021. The Department for Food and Rural Affairs (Defra) recently reclassified some types of fruit and vegetable from the EU as “medium risk.” This decision is expected to add £200 million to import costs, according to the Fresh Produce Consortium (FPC).
Nigel Jenney, CEO of the FPC, warned that these increased costs would be passed on to consumers and pose a threat to the viability of numerous small businesses. The reclassification will affect a range of produce, including peaches, strawberries, apples, pears, tomatoes, blueberries, grapes, sweet potatoes, and carrots.
Not what Brexit promised
In the lead-up to the 2016 referendum, and even directly after it, politicians who supported Leave, including Michael Gove and Jacob Rees Mogg, promised the electorate that Brexit would lower food costs. Now research by the London School of Economics shows that Brexit has increased food bills by £210 per household. This represents around a third of the rise between 2019 and 2021. The new Brexit import controls will add even more.
Complicated border checks
Exporters from the EU will be required to complete phytosanitary certificates which verify that goods have been inspected and are disease and pest-free before shipping. These health certificates, signed by a health official, must then be lodged by importers on Defra’s system. The FPC contends that allowing businesses to conduct their own official inspections, subject to monitoring, could significantly reduce the estimated annual cost of £200 million.
The FPC says around 65% of HGVs which enter the UK are carrying a mixed load of goods – what the haulage industry refers to as ‘groupage’. Border control is most likely to pick these lorries for inspection, disproportionately affecting smaller importers. This will cause delays to delivery, reduce shelf-life and impact the produce price. Delays will also add a cost to the haulage companies, pushing prices up further.
“These increased costs will apply in October and be passed straight on to consumers,” Nigel Jenney, CEO of the FPC told ITV News, “and they are a threat to the viability of numerous small businesses”.
A high proportion of UK food comes from the EU
Almost half of the food consumed in the UK comes from abroad, with nearly two-thirds of that from the EU. The FPC argues that the current system is not fit for purpose, expressing doubt about the capacity of EU officials to generate the volume of required phytosanitary certificates.
The Food and Drink Federation reports that in 2022, the UK imported £3 billion worth of vegetables, with 79.4% originating from the EU. Fruit imports for the same year stood at £4.5 billion, with 39.7% coming from the EU. The Netherlands, Spain, and France were the largest EU import markets.
Save British Farming saw this coming
Liz Webster, chair of Save British Farming, predicted before the referendum that leaving the EU would lead to food shortages and price increases. “I have continually made it clear that Brexit import checks are bad news for consumers and businesses, and no checks are bad for public health and biosecurity.”
Webster suggests the only way to resolve the problem is for there to be ‘dynamic alignment’ with EU regulations, which would remove the need for checks. “Better still,” she adds, “we should get back into the single market and customs union and begin our journey back as EU members.”
Defra has not yet provided comments on the matter.
