Representatives from various industries, including food, farming and importing, were “vocal” about their concerns on the impact Brexit could have on them.
So what would a no deal situation mean for your weekly shop?
30% of food comes from the EU
Currently, half of the UK’s food is imported, with 30% from the EU and another 11% from countries with EU trade deals. The report also says 40% of vegetables and 37% of fruit sold in the UK come from the EU.
Potential 20% price rise for cheese
The inquiry spoke to different organisations which have attempted to model the effects on food prices if the UK becomes subject to tariffs on EU produce. According to their report, the UK Trade Policy Observatory has predicted:
• 5.8% for meat
• 8.1% for dairy products
• 4% for vegetables
• 3.1% for fruit
• 1.8% for bread and cereals
• 1.5% for fish
Meanwhile, Dairy UK’s modelling warned of a 20% rise in the retail price of cheese.
Additional checks on food may mean a shorter shelf life
Frictionless borders currently mean a decent shelf life for products arriving from the EU. But, after Brexit, there may be additional checks on foods coming from non-EU countries via the European Union.
Once it’s outside of the EU, the UK will be responsible, and the extended processing time may mean food doesn’t last as long once it hits the shelves.
The British Retail Consortium told the committee: “Delays due to border controls will reduce the life of products in the home, driving up food waste or, in the worst cases meaning it is unproductive to put it into store.”
Two-tier effect
The committee warned there was a danger groceries could be split into two tiers. Lord Teverson, the committee’s chairman, said: “Will we have a situation where high quality, local produce is available for those who can afford it, with cheaper food imported for those on lower incomes?”
Difference between the Government and industry
Lord Teverson added he saw a “striking contrast” between the Government’s view on the issue and industry concerns. “The minister may not be worried about the potential for Brexit to impact on the price and availability of food, but the representatives of the food and farming industry, importers, port authorities and consumer organisations were vocal in their concerns.” A government spokeswoman said: “Food prices depend on a range of factors, including commodity prices, currency exchange rates, and oil prices – this will continue to be the case when we leave the EU. “But we also want to ensure consumers have access to a wide range of food, which is why we are considering how we best manage border checks and controls when we leave the EU without impacting the smooth flow of trade.”
Source: iNews