UK consumers may see sharp rise in food costs after Brexit

Post-Brexit trade barriers could lead to a sharp rise in food costs and also disrupt the supply chain in the UK, according to a House of Lords report.

According to the report, released by the House of Lords’ European Union (EU) Energy and Environment Sub-Committee (Committee), 30% of the food consumed in the UK comes from EU.

The committee noted that if there is no established agreement in place by the time UK leaves the EU, then it would not only increase food prices, but also impact food deliveries due to the additional workload at the country’s ports and airports.

Although the government hopes to negotiate a trade agreement to allow tariff-free and ‘frictionless’ imports of food to continue, the committee believes that the outcome of these negotiations is not guaranteed.

According to the panel, EU food imports cannot be easily replaced by either producing more in the country or importing more from non-EU countries. The UK’s self-sufficiency has been on the decline for the last three decades and it is not possible to quickly reverse the situation.

UK Food Minister George Eustice MP downplayed the level of new post-Brexit trade deals when he appeared before the panel.

In addition to 30% food imports from the EU, about 11% of food products are imported into the UK from non-European countries through various trade agreements.
Currently, 40 such agreements are in place, covering 56 different countries.

In its report, the committee has urged the UK government to seek agreements with these countries in order to maintain a status quo during the Brexit period.

EU Energy and Environment Sub-Committee chairman Lord Teverson said: “Throughout our inquiry, there was a striking contrast between Government confidence 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.”