By Angela Green: EU fruit and veg import costs set to increase from next week.
This year will see a notable increase in the price of fruit and vegetables imported from the EU to the UK, scheduled to occur in two phases: the first beginning on the 1st of February, followed by a second on the 1st of April. These price hikes are a direct result of government delaying post-Brexit import controls.
It’s important to understand the magnitude of these changes. According to a report by The Food Standards Agency, the UK imports nearly half of its food, with a significant two-thirds of that coming from EU countries. This underscores the potential impact of the upcoming price adjustments.
In line with its Brexit exit agreement, the UK government will introduce new regulations and rules for EU businesses exporting animal and plant products to the UK. The initial phase of these rules comes into effect on the 1st of February, with full physical requirements being enforced from the 1st of April.
These new border checks, which were initially postponed five times since the EU-UK Trade and Cooperation Agreement was enacted in January 2021, are now being implemented despite concerns over their potential to increase prices and fuel inflation. The UK’s current unstable inflationary cycle only heightens these concerns, suggesting that delaying these measures may not have been the government’s most effective strategy. Which is quiet something, given the makeup of inept ministers in and out of cabinet through recent years.
Food importers have raised alarms over the impending additional administrative requirements, predicting that they will impact the choice, availability, shelf-life, and price of EU-imported goods in the UK.
In anticipation of these changes, the UK’s Department for Food and Rural Affairs (DEFRA) has updated its classification for many EU-imported fruits and vegetables. Earlier this week these goods have been moved from a “low risk” to a “medium risk” category within the Border Target Operating Model (BTOM), signaling the government’s recognition of the impending inflationary effects.
The new controls will affect a range of produce, including peaches, strawberries, apples, pears, tomatoes, blueberries, grapes, and various vegetables like sweet potatoes and carrots.
For EU exporters, the new rules necessitate the completion of Phytosanitary Certificates, essentially health certificates, which must be signed by an official and lodged by the importer on DEFRA’s ‘Import of Products Animals, Food and Feed System’ (IPAFFS). This notifies UK enforcement authorities. Separate certificates might be required for different suppliers or produce originating from various countries.
As goods are transported to the UK, HGVs arriving at UK ports may be subject to inspection at Border Control. For those not selected, an entry charge, ranging between £20 – £43, will be automatically applied through the pre-notified Phytosanitary Certificate in IPAFFS, although precise details of the fee and its application remain unspecified by the government.
This development poses yet another challenge for UK’s hospitality and catering sector, which is already navigating a precarious economic landscape. Given the high percentage of EU-imported fruits and vegetables used by UK operators, adapting logistics and transferring costs to consumers will be a significant hurdle for many businesses.
A government spokesperson commented on the situation, stating: “We have introduced these import controls to support businesses and ensure the efficient trade of fruit and vegetables is maintained between the EU and Great Britain.” This statement, all too graphically illustrates ministers have no strategy for UK PLC or comprehension of the complexity and challenges that lie ahead for UK businesses and consumers alike.
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