New Brexit border controls could stifle imports of tasty food from the EU, sellers warn

Panzer’s deli in northwest London has lost 37 suppliers from the European Union since Britain left the bloc’s single market in 2021, and owner David Josephs fears more will quit after Britain imposed new border controls this month implemented.

Britain voted to leave the EU in 2016, but the task of untangling supply chains and customs borders was such that it will only set new rules this year.

EU exporters of chilled and frozen meat, fish, cheese, dairy products and some cut flowers have been required to provide health certificates signed by a vet or factory inspector since January 31 – a requirement that smaller British retailers and wholesalers say could delay the arrival of goods by weeks.

They now warn that the start of physical checks, along with higher costs, from April 30 will limit the variety and freshness of fine artisan foods such as charcuterie, cheese, pasta and olive oil, and prices will rise.

“We see small independent producers making fantastic things that you wouldn’t necessarily see outside their region and we’re bringing them to London, but it’s becoming increasingly difficult because some of them don’t want to do the paperwork,” says Patricia Michelson. owner of retail and wholesaler La Fromagerie.

The new hurdles threaten to unravel Britain’s food and drink diversity, said John Farrand, director of the Guild of Fine Food, which represents 12,000 independent food businesses.

“Only the very largest processors and retailers will be able to deal with this bureaucracy and the scale of these controls,” he said.

“The smaller producers and retailers will simply give up and we will end up with less choice and less tasty food and drink.”

The government says the new controls will help prevent pests and diseases from entering Britain.

It also says it will create a level playing field for UK exporters. In 2021, the EU immediately enforced its rules, leading to delays at ports and prompting some British exporters to stop selling to the bloc, at least initially.

FEAR OF DISRUPTION OF SUPPLY

Delicatessen owner Josephs, who sells products from more than 80 countries and supplies almost 200 restaurants, says Brexit has been a disaster for his business.

“The government says there will be no disruption. I guarantee it will be,” he said. “We already have a number of meat suppliers saying that it is becoming questionable whether it is economically viable to supply to Britain.”

Nick Carlucci, sales director of Italian food retailer Tenuta Marmorelle, based in Berkshire, southern England, said the changes in January increased costs and extended lead times for some goods by a week. He imports olive oil from his family farm in Puglia, burrata and buffalo mozzarella, balsamic vinegar, cold cuts, pasta, antipasti and panettone.

He said that from April 30, importing just one pallet of five or more different types of meat would cost him 432 pounds ($537) more than before Brexit, including 120 pounds for a veterinary certificate and 195 pounds for government fees and charges. implemented. to cover the costs of its new system.

Carlucci imports 15 to 20 pallets a week and says the extra costs will cut his profit margin by 10%.

“We source artisanal products from small producers with a short shelf life,” he said. “We need to keep these products running all the time.”

Concerned about bottlenecks in the port of Dover, Britain’s largest port, he stocks up as much supplies as possible.

The higher costs will have to be passed on.

“We do our best to absorb as much as possible, but we have to pass it on to our customers, who are farm shops, food halls and delicatessens,” he said, pointing to the price of a 150 gram tray. of Parma ham would rise by 17 pence or 4% at the end of the month.

British government opts for ‘pragmatic approach’

There is still confusion about the frequency of checks.

The government says it will take a “pragmatic approach” and does not expect any significant disruption to imports.

“The goods that pose the greatest biosecurity risk will be prioritized as we strive to achieve full control rates and high levels of compliance,” a government spokesperson said.

It estimates that the border rules will collectively raise costs for importers by £330 million a year, and increase food inflation by just 0.2% over three years.

UK food inflation rose to a 45-year high of 19.2% in March 2023 due to rising energy costs, labor shortages and disruption to Ukrainian exports, but fell to 4% in March.

Andreas Georghiou, who imports from small producers in France, Italy, Spain and Greece for his fine foods and ingredients store in south-west London, expects the worst.

“They’re not prepared to do certifications, they’re not prepared for vets to come and visit, so they just say no,” he said.

At a recent trade show in Florence, April’s changes dominated the conversation, Carlucci said.

“Everyone asked: what is Britain doing? It was actually a kind of disbelief.” ($1 = 0.8041 pounds)

(Reuters)