Update on trade disruptions following the end of the Brexit transition period

Many if not most exporters kept consignments at minimum levels or decided not to export at all in the first week of January. There were nevertheless a range of significant problems for most if not all food sectors, despite volumes being very low

Further details and examples are as follows:

  • Grouped consignments (mixtures of different products in a single lorry load) are facing major problems, causing many supermarket shelves in Northern Ireland and the Republic of Ireland to be empty and similar problems where such consignments are destined for mainland Europe. Lorries are accompanied by whole box files full of paperwork relating to the goods they are carrying. An industry representative believes that is an inherent problem of the rules for all ‘third countries’, and not a teething problem.
  • 30% of all exports are facing inspections. This compares with 1% of all New Zealand imports to the EU (which tend to be single products such as just lamb, and so much more simple to deal with than the diverse range of products the UK exports to mainland Europe)
  • Despite the Transport Minister outlining that there was no capacity to extend the priority list for lorries to include more perishable/vulnerable ‘goods’ (including day old chicks), the Government has proposed extending the priority list to accommodate supermarkets wishing to send products to Gibraltar
  • Live chick exports have not faced any significant problems as the industry has decided to send relatively low volumes, and the general numbers of lorries going through ports is also low for similar reasons, thereby reducing problems
  • Under the new trade rules, animal byproducts from the rendering process are subject to 40-day animal standstill rules (for the animals from which they come). This is hoped to be due to an oversight in changing the rules, since the 40 day residency rule does not apply for animal products, so it is hoped it will be corrected
  • As a result of this and related issues, renderers are facing major problems exporting animal byproducts. It is understood in the week ending 15th January there were well over 100 tankers stuck at UK ports unable to cross to their destinations on mainland Europe. There are major concerns that if there is not movement soon, meat processors will have nowhere to dispose of byproducts and unless there is alternative storage, they will have to stop operating. Similar concerns exist in terms of fallen stock collections being disrupted but most produce from fallen stock rendering is used in the UK rather than being exported, thereby reducing this risk
  • Beef and lamb exports are currently low but expected to rise, and there are concerns that this rise could be accompanied by increased problems and delays at ports - there is a need to keep established customers on mainland Europe happy by ensuring deliveries so that they do not look for suppliers elsewhere
  • It appears that the guidance notes on Export Health Certificates (EHCs) provided by Defra to UK vets, Environmental Health Officers etc. is different to the guidance produced in the EU, and this is causing a number of problems
  • Coronavirus has caused numerous problems in terms of the pig industry, in particular in terms of processing cull sows, leading to a significant backup in the system. The main market for sows is on the continent and delays have therefore added to the problems
  • Some Export Health Certificates require 70 to 80 stamps, and these can be rejected if any are missing or even if a stamp is the wrong colour
  • The FSA has offered to provide additional veterinary support to processors if needed
  • The dairy industry is not facing any major problems at this time but there is a concern that problems with products such as bulk cream will lead to reductions in price by March or April (this is how long it takes such impacts to work their way back to farmgate prices)




 

 

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