Upcoming Webinars Archived Webinars Training Vitals Host A Webinar About Get Updates Contact

Brexit Could Negatively Impact Trade For Food Manufacturers

XTALKS VITALS NEWS

EU Flag

If the UK votes in favour of Brexit on June 23, analysts warn that customs procedures for trade between the country and those still within the EU will become more complicated and involve additional paperwork.

Share this!

June 9, 2016 | by Sarah Massey, M.Sc.

According to food industry insiders, food manufacturers could face customs barriers and shipping delays if Britain decides to exit the EU. UK-based food companies which trade with various other members of the EU, currently benefit from a fairly inexpensive and easy trade process between member countries.

If the UK votes in favour of Brexit on June 23, analysts warn that customs procedures for trade between the country and those still within the EU will become more complicated and involve additional paperwork. This increased trade regulation as well as the introduction of VAT and duties could be a major issue for perishable food manufacturers.

“A vote to the leave the EU has the potential to decimate the British food industry,” said Ranjit Singh Boparan, founder and chief executive of 2 Sisters Food Group. “Challenges Brexit could create will put many businesses at risk.”

According to Boparan, uncertainty regarding the implications of Brexit could lead to a decline in consumer spending. In addition, he believes that access to a single market and a wide labour pool across countries are other compelling reasons for Britain to stay in the EU.

“It’s already a tough environment; highly-labour intensive, high volume, producing very low cost products for low margins, and operating in a deflationary market,” said Boparan. “The additional challenges Brexit could create for my industry will put many businesses at risk and I don’t think that’s a risk worth taking.”



In contrast, some members of the food industry in Britain are hesitant to share their official opinion on Brexit just yet. Though the Food & Drink Federation – a trade organization representing companies in Britain’s food manufacturing sector – had previously shied away from sharing their official stance on Brexit, the organization’s director general, Ian Wright, has disclosed his personal views.

“We are an industry that exports and imports,” said Wright. “If access to markets outside the UK is affected that will have a material and detrimental impact on our business.”

The Food & Drink Federation has since mirrored Wright’s views by stating that the UK should stay a member of the EU. Critics of Brexit have also pointed out that food manufacturers within the EU that currently import their products into Britain could face the same trade challenges as UK-based exporters if the country exits the EU.

The food industry in the UK is one of the largest sectors, with food exports totaling approximately £18.8 billion per year, according to the UK's Department for Environment, Food and Rural Affairs. Currently, 54 percent of the UK’s total food supply is produced in the country, with 27 percent imported from other members of the EU and 19 percent from the rest of the world.


Keywords: Food Manufacturing, Food Industry, European Union


| NEXT ARTICLE | MORE NEWS | BLOGS | VIDEOS | POLLS & QUIZZES | WEBINARS |

Share this with your colleagues!

MORE NEWS
Use of Testosterone Treatments Boosted by DTC Ad Campaigns

March 24, 2017 - Those with a stake in the pharmaceutical industry often question the effectiveness of direct-to-consumer (DTC) advertising, and whether it truly influences consumers to talk to their doctors about medical conditions and perhaps even ask for drugs by name.

Featured In: Pharmaceutical Marketing News


FDA Approves New Drug for Parkinson’s Disease

March 23, 2017 - Newron Pharmaceuticals’ Xadago (safinamide) has been approved by the US Food and Drug Administration (FDA) as an add-on medication for patients with Parkinson’s disease.

Featured In: Clinical Trials News, Life Science News, Pharmaceutical News


Amgen Identifies Issue with Patient Access to PCSK9 Inhibitor

March 23, 2017 - Most US patients hoping to get their PCSK9 inhibitor medications covered by their prescription drug plan are being denied, according to two new studied conducted by Amgen.

Featured In: Biotech News

LEAVE A COMMENT
 
  
THE XTALKS VITALS LIFE SCIENCE BLOG

Will Pharmaceutical Serialization Solve All of Our Drug Counterfeiting Problems?

REGISTER FOR THESE WEBINARS

How to Improve the Speed and Efficiency of Your Clinical Trials


High Performance Computing for High Content Screening - A Case Study


The FDA Guidance on the Assessment of Abuse Potential of Drug – A Critical Review


Treatment of Psoriasis: Improvements Through Clinical Trials


Copyright © 2016-2017 Honeycomb Worldwide Inc.