EU Reset: The Biggest U-Turn to Date

Mike Parr

This article is written by Mike Parr (pictured) who is the CEO UK & Ireland, PML Seafrigo and published by That's Food and Drink as a public service.

In 2016, 52% of the UK voted to leave the European Union in what is now referred to as the Brexit referendum. According to Parliament UK a referendum is when a question is decided by putting it to a public vote. Referendums are an example of direct democracy. Clearly, we no longer live in a democracy.

Yesterday's EU reset announcement makes a mockery of the last nine years. During this period, businesses in the supply chain associated with the fresh produce industry have put a huge amount of time, effort – not to mention significant financial investment - to establish appropriate protocols within the new Brexit trading landscape. 

Producers, logistics suppliers, industry stakeholders and government representatives attended countless meetings to work towards a solution which would allow a fair and seamless transfer of produce into and out of the UK. To say this has been a difficult road to travel is an understatement. The challenging number of U-turns, the persistent failure to listen to those working within the sector, the inability to meet deadlines, the constant whitewashing to suit each government's agenda, I could go on. 

Many companies – including PML Seafrigo – have worked tirelessly to try and remain ahead of the curve and to be “Brexit fit”. In our case, we went as far as investing in a transport and logistics hub with remote HMRC / Defra approved Border Control Post status to enable a faster transit of consignments out of the Port of Dover. 

The site incorporated specialist inspection amenities for Defra personnel. We addressed the need for best-in-class facilities for drivers to match the fundamental services available to them in other European countries. We were at the front of the queue to apply for training to acquire Authorised Operator Status.

Just two weeks ago, discussions were held regarding the much-anticipated plant health border checks, due to commence 1st July.  Baroness Hayman insisted there was to be no easement on the deadline and that the new required checks would be rolled out – this despite the issues the industry has repeatedly flagged concerning Sevington's inability to cope with the required level of inspections. We also voiced our concerns regarding the absence of a definitive list of produce classified as Medium Risk, the lack of clarity regarding the Common User Charge and the unacceptably long evaluation of the pilot Authorised Operator scheme.

And now the Prime Minister has acted unilaterally to reset the rules. Without consulting the nation. Whatever your political persuasion, the fact remains that Brexit was the choice of the UK population, this maverick behaviour is inconsistent with the notion that Britain is a democracy.

We are now faced with the biggest U-turn of them all. And true to form, without any firm guidance to those affected most. There are no specific timings on when the new SPS protocol will start which will cause further bedlam at the border. In the absence of clear guidance, do we default to the original BTOM plans due to come into effect on 1st July or are we able to kickstart the Authorised Operator Status scheme? 

Is the government planning to rollout official inspections throughout a 24/7 window? No thought has been given to the negative impact of inspection checks for non-EU fresh produce, which as Nigel Jenney, Chief Executive at the FPC correctly states accounts for 50% of fresh produce imports. These are countries that have stood by the UK during what can only be described as highly turbulent times. 

We've forged excellent working relationships with non-EU suppliers to maintain the year-round supply of produce. 

How can it be fair to now penalise those that have helped us simply because the government has failed miserably in its attempt to deliver on a cohesive border strategy? And has the government given any thought as to how businesses might be reimbursed for all the time and money spent on working towards the original Brexit plan?

The consumer will be oblivious to all the preparations made by those in the supply chain following the EU exit,  to ensure compliance with the government's instructions. They may be about to find out with the chaos that is about to ensue. 

I truly despair as to what the future holds.

France's love for UK food exports driving demand for cheap postage options, claims Parcels Please

According to information from the Food and Drink Federation (FDF), exports from the UK increased for the sixth consecutive year in 2010. With exports to the value of £10.83 billion, the industry enjoyed a 11.4 per cent increase on the levels for 2009.

While the majority of the exported food went to Ireland - despite its recent economic troubles - a large portion of the UK's exports were sent to France. The Netherlands, Germany and Spain additionally remained popular destinations for UK produce while other countries, such as Hong Kong, the USA and the UAE, also enjoyed a boom.

Overall, the produce most highly desired by other countries came from the dairy sector, but fish and meat also enjoyed a significant increase. What's more, prepared foods such as soups, sauces, rice and ice cream, as well as baking products and cereal, all received a boost in 2010.

A spokesperson for international delivery experts (http://www.parcelsplease.co.uk/) Parcels Please said that many people may be surprised by the most commonly exported foods: "Here in the UK there are a lot of people who think we are lagging behind other countries when it comes to fine food - especially when you're talking about cheeses and meats - as there are so many other European countries like France and Italy who enjoy a much better reputation.

"But that's just not the case, the UK is home to some fantastic produce, and the news that dairy was the most popular export just goes to show we can compete with the big boys when it comes to products such as cheese or yoghurt."

The report from the FDF supports the belief the food and drink industry in the UK is an important one for the economy as a whole, and Food and Farming Minister Jim Paice has spoken out about how important the export sector is to the UK's producers.

Reliance on the export business means that postage and packaging companies who deal with overseas orders could find that their services are more frequently in demand. Furthermore, for local producers who are struggling to capitalise on the popularity of UK food stuffs, a cheap delivery service can make all the difference to their profits.

According to Parcels Please, this margin can be the difference between a successful business and a struggling one. A spokesman explained: "When you're operating on a tight margin, any extra cost savings can make a huge difference to your business. Many local producers have been hit by the effects of the recession and there are some who are struggling to survive.

"While news that UK exports remain strong is welcome, businesses need to be able to utilise things such as services offering (http://www.parcelsplease.co.uk/cheapest-parcels-to-europe/de...) cheap parcels to France and other countries with a high demand for UK goods, to help them make sure they are turning a profit and continuing to benefit the country's economy as a whole."