Brexit: Food Industry Calls for Clarity

30 Mar 2017 --- Now that Article 50 has officially been invoked by British PM Theresa May, the UK food and beverage industry is calling for swift action to move from speculation to real details as the sector waits to find out what the EU exit will mean in real terms for the industry.

In a statement from Ian Wright, director general of the Food and Drink Federation (FDF), that was issued just after yesterday’s Article 50 was triggered, he calls for more action.

“The triggering of Article 50 provides us with a definitive timeframe for the UK to exit the EU and the clock is ticking. We hope this means we can move swiftly from the realm of speculation into one where real issues are being resolved,” he says.

“The results of the negotiation will have lasting implications - for our people, businesses and economy. Food is at the heart of our culture, identity and security. It is vital that the Government prioritizes food and drink.

“FDF on behalf of manufacturers, alongside our partners across the food chain, will work tirelessly to help government to secure the best possible outcomes on future trade, access to the right workforce, regulation and ensuring a seamless border with the Republic of Ireland.”

Similarly, FoodDrinkEurope, underlined the need to minimize the business impact of the UK’s departure on European food and drink companies and the need to establish a new and sustainable working relationship as quickly as possible.

“EU-27 food and drink trade with the UK is worth some €45 billion (US$48.3 billion), making it our largest trading partner. Exchanges both ways will be greatly affected by this decision, with economic consequences which still remain to be fully understood”, says Mella Frewen, director general of FoodDrinkEurope.

“The time has come for both parties to engage in meaningful negotiations, to create certainty for citizens and business. We encourage negotiators to work for the best deal, one that keeps barriers to an absolute minimum.”

“As the EU’s largest manufacturing industry, the food and drink sector must be a priority in the upcoming negotiations. Minimizing uncertainty is essential for ongoing business, for growth and investment. Ensuring the least possible disruption of trade in raw materials, ingredients and finished food and drink products, and minimizing regulatory divergence, will be crucial elements in the negotiations for our industry.”

“It will be vital to ensure there is adequate time for transition to new arrangements for the highly integrated and sophisticated supply chains that exist in the EU food industry.”

Meanwhile, Scotland’s National Farmers’ Union is calling for a start to “genuine negotiations on the future of farming”.

Since the outcome of the referendum on EU membership in June 2016, the Union has used the time to build a case for Scotland’s farmers and crofters to be supported outside of the EU – via continued free trade with the EU; new, ambitious international trade deals; access to a non-UK labor pool and a well-funded, refreshed agricultural policy that fits the needs of Scotland’s unique landscape and farming practices.

NFU Scotland continues to lobby politicians, claiming “farming is the foundation stone of our nation’s lauded food and drink sector.”  Farming, crofting, food and drink manufacturing, processing and distribution span more than 75,000 separate Scottish businesses and almost 400,000 Scottish jobs. It is in talks with Scotland Office Minister Lord Dunlop on farm in the North-East today (Mar 30), having been in long standing dialogue with various UK departments since the outcome of the referendum. 

Speaking just after Article 50 was triggered yesterday, NFU Scotland President Andrew McCornick said: “Article 50 has now been triggered and the real negotiations will now start.  The time for posturing has passed. Substance and detail on how agriculture will be prioritized in the negotiations ahead have, to date, been frustratingly sparse but this must now change. Governments now need to deliver what our industry requires.”

“On this historic day, we reiterate the importance of securing a deal that works for Scottish farmers and crofters, and point to the real opportunities that the right deal for agriculture could have on Scotland’s dynamic food and farming industries.

“We repeat our view that a ‘Defra-centric’ one-size-fits all agricultural approach for the whole of the UK would be wrong. Scotland should rightly determine the priorities for its own properly-funded agricultural policies and link together with the other parts of the United Kingdom on joint initiatives where appropriate and mutually beneficial. The needs of England, Wales, Northern Ireland and Scotland are very different and must be recognized throughout the remainder of this process.”

“It is also vital to ensure a marketplace which delivers for Scottish producers in the UK, Europe and globally.”

Welsh Food Industry Jobs Program
In Wales a new £21 million (US$26 million) program to strengthen Wales’ food and drink sector is expected to safeguard thousands of jobs and deliver over £100 million (US$124 million) for the Welsh economy. Welsh Government’s Project HELIX provides funding support for research into global food production, trends and waste to help small to medium sized food manufacturers across Wales to increase production and reduce waste.

The Project is funded through the Rural Development Program (RDP) and is expected to create 370 new jobs, primarily in rural Wales and the Valleys, while safeguarding a further 2,000 over the next five years. The research will take into consideration new challenges and opportunities facing the industry as a result of the UK’s decision to leave the EU. The findings will provide Welsh producers with the best opportunity for growth and economic impact.

The Project was launched at Welsh Government’s TasteWales event where over 100 Welsh producers showcased the very best of the Welsh food and drink industry to over 150 UK and international buyers.