The PFMA, alongside other food-related organisations, has revealed that the new Export Health Certificates (EHCs) requirements imposed on exports to the EU is estimated to have cost at least £60m in paperwork in just one year (to November 2021).
The organisations making up the SPS Certification Working Group are highlighting the continuing financial and human cost of post-Brexit red tape.
The group, which includes food and feed trade associations, hauliers, farmers and veterinary and environmental health professional organisations, proposes an urgent new veterinary agreement and streamlined processes to resolve crippling restrictions to exports to the EU, Britain’s largest trading partner.
To cover these additional costs Great Britain’s food industry would have needed to generate around £3bn of total additional sales (assuming a 2% profit margin) in the first year of Brexit. However, as a result of these new costs many food businesses can no longer afford to export to the EU. This means that many companies have ceased to trade with their previous largest export market, which impacts on livelihoods and the GB economy.
The cross-industry, veterinary and environmental health group is chaired by Karin Goodburn MBE, director of the Chilled Food Association, who said: “These already disturbing figures are in fact an underestimate of the total cost to the industry as they exclude bulk orders of EHCs from the Animal and Plant Health Agency made in one request and the wider costs of Brexit SPS requirements.
“Without urgent action the situation is only set to deteriorate and there are no quick fixes. As an example it takes more than 5 years to train the vets required we need to certify the EHCs. However we are proposing solutions and call on Government to support us in ensuring the viability of our food businesses.”
The SPS Working Group is proposing:
- SPS/veterinary agreement with the EU to reduce administrative burden and therefore certification costs
- Digitisation of paper systems - and to be certain of their acceptance by receiving BCPs in Member States/Northern Ireland
- Certification workforce recruitment, planning, training and retention
- Certainty regarding implementation of EU-GB trade on introduction of veterinary checks by GB on 1 July and in a second wave on 1 November 2022 to ensure there is a level playing field between GB and the EU on both exports and imports.
- Clarity on cost implications/continued viability of imports from EU. GB food security and availability of ingredients/finished products being threatened by lack of resources to check incoming food, coupled with EU exporters deciding not to attempt to supply GB owing to the additional admin burden and costs.
