Are Scotland’s food and drinks businesses prepared for Brexit?

One month to go until Brexit, and ahead of industry talks with UK Government, new poll shows businesses are unprepared

With only one month left until the end of the transition period, nearly three quarters of Scotland’s food and drink industry (72%) feel unprepared for Brexit and any resulting disruption, according to the results of a new member poll by Scotland Food & Drink.

The finding is the result of a poll of 170 members at Scotland Food & Drink’s AGM which was held digitally due to Coronavirus restrictions. This latest development underlines concerns among Scotland’s food and drink businesses which has emerged ahead of talks between industry leaders and the UK Government, taking place today.

The meeting with DEFRA Minister Victoria Prentice is taking place to discuss the contents of an open letter sent by leaders of Scotland’s food and drink industry to the Prime Minister seeking urgent action and assurances around trading arrangements once the Brexit transition period ends on 31 December.

With many of the new trading rules still unknown, coupled with businesses desperately fighting to survive the impact of the pandemic, the industry has called for a six-month grace period to adjust to the new trading rules, in particular on the requirement to issue millions of new export certificates for food products. This is a request which has subsequently been echoed by other UK & NI business groups, including the CBI, Northern Ireland Retail Consortium, and the Food and Drink Federation Cymru.

Other requests include; a commitment to bring forward a package of financial compensation for producers, processors, manufacturers and distributors who encounter losses as a direct result of border or market disruption; finalising operational arrangements for enabling the smooth passage for seafood consignments across the Channel; and adding food and drink sector roles to the Scottish Shortage Occupation List.

The EU is the destination for 70% of Scotland’s food exports and the largest market for Scotch whisky. It is estimated that food and drink exports are four times more important to the Scottish economy than to the English economy. However, a survey of Scotland Food & Drink’s members shows that 64% of Scotland’s food and drink businesses think growing sales in export markets over the next few years will be a key challenge.

James Withers, Chief Executive of Scotland Food & Drink, said: “With only one month to go until the end of transition, Scotland’s food and drink industry finds itself in a perilous position. Without the reassurances we have asked for, particularly the six month grace period on export paperwork, there is huge concern among our members and the wider industry that the impact of Brexit could cost millions and tip many businesses over the edge.

“In reality, the Brexit transition period hasn’t actually happened. Businesses have had to focus on surviving the Covid-19 pandemic and, with one month to go, we still don’t know what exactly we’re preparing for. Is it a deal or no deal? Even without the added financial and logistical pressures of Coronavirus, preparing for a completely unknown set of trading regulations and the biggest trading upheaval of a generation is a hugely challenging ask.

“At a time when our industry is still struggling with the £3 billion hit of Coronavirus, we now risk putting businesses to the wall by not providing time to implement the new regulations. It is unacceptable and entirely avoidable.

“We remain hopeful that the UK Government is not underestimating the scale of the problem and that we can reach agreement on the constructive support measures requested.”

Please comment below and let us know what your business is doing to get prepared for Brexit!

10 views0 comments