UK border control changes spark concerns among food producers over rising costs

30 Jan 2024 --- The UK government’s introduction of the Border Target Operating Model (BTOM) has given cause for concerns among food businesses in the UK and the EU. 

The Department for Environment, Food & Rural Affairs (DEFRA) recently reclassified certain fruits and vegetables under this new system, raising alarms over businesses’ readiness for these changes and the potential impact on prices.

Marco Forgione, director general of the Institute of Export & International Trade, expressed concern over the handling of these changes. “This reclassification means that unexpectedly a range of fruit and vegetables are now subject to new processes and administrative requirements.”

“At a time when business is preparing for the most significant modernization of the UK border in several generations, the lack of communication on this reclassification of fruit and vegetable products is not very encouraging.” 

Implementation timeline
BTOM, aimed at enhancing the efficiency of imports from the EU and beyond without compromising security, categorizes goods based on risk levels: high, medium, or low. This classification dictates the processes and checks each product will undergo. 

There are fears that food prices could increase in the UK due to the additional costs for the exporter and the importer.It begins at the end of this month, with Export Health Certificates needed for some medium-risk products, followed by a new global risk-based import regime and physical checks starting in April. 

The third phase will take place in the latter half of this year, with simplified processes for certain goods being introduced. Safety and security declarations will become mandatory for all goods, including those requiring Sanitary and Phytosanitary checks.

“The UK is in the process of creating a world-leading, digitally enabled, risk-based intelligence system for the effective border system, and we support the government’s ambition with the BTOM,” says Forgione.

“We know that businesses within the UK and EU, particularly small and medium-sized enterprises are struggling to get to grips with the January 31 changes and have concerns about the new physical checks that will come into force at the end of April. ”

Navigating the impact
The affected products include a wide range of goods, from dairy products like chilled milk and cheese to seeds of various fruits and vegetables, live animals, and even frozen or raw pet food. 

The impact on trade is multifaceted. While there are benefits such as the protection of the UK’s environment, farming industry, and populace, digitalization of certificates, and potentially reduced costs and increased processing speed for exporting businesses, there are downsides too.

Businesses throughout the supply chain in the UK and EU must familiarize themselves with these changes, necessitating training and adaptation time. There’s a potential for increased costs as businesses adjust their models and supply chains. Delays in product delivery due to unpreparedness for the new policies are also a possibility, potentially leading to higher consumer prices.

“Business leaders have revealed to me their frustration that their preparation efforts are undermined because of a lack of clear communication,” Forgione remarks.

“There is a risk that these changes and the way information has been shared could result in additional costs for the exporter, the importer and ultimately the consumer.”

Fruit and vegetable growers across the UK are also anticipating challenges from new post-Brexit border checks, which may result in extended waiting times and increased costs for keeping perishables refrigerated.

Edited by Sichong Wang