On Monday, a retailer industry group said that the food security in Britain could be hit badly if the country moves out of the European Union without sealing any deal. It said that the Brexit will hit the company’s trade with the bloc.
However, a representative of the British Retail Consortium (BRC) refused to comment on this speculation, saying that the group has earlier warned about the consequences of a no-deal Brexit, such as the possible hike in the prices of food items.
Business leaders has raised concerns in line with the chaos at ports, in case Britain doesn’t comply the terms of its exit from the EU which is scheduled to take place on March 29.
According to industry sources, BRC has issued a warning in a letter written to the MPs and approved by supermarket groups, such as Tesco, the Co-operative Group, Lidl, Sainsbury’s, Marks & Spencer and Morrisons.
The letter written by BRC underlines the food retailers’ fears of trouble that may arise for the suppliers by the end of March, mentioning that 90% of lettuces, 80% tomatoes and 70% soft fruit is shipped into Britain from the EU during that time of the year.
Earlier, the BRC warned that a ‘cliff edge’ Brexit is going to choke food supplies badly, leading to price hike and could push many retailers out of business.
In July 2018, it mentioned that the food and beverage commodities would face nearly 29% increase in the cost of importing from the EU from non-tariff barriers solely, wherein many increases would be directed to consumers in the form of higher prices.
In the beginning of this month, Britain’s two leading food retailers Sainsbury’s and Tesco said that the country would face a fresh food blockage if it moved out of the EU without sealing any deal.
Sneha Varghese is an experienced food & beverage consultant. She covers the latest trends and analysis impacting the food & beverages industry, informing and educating audiences through her writing.