Sector Focus
Retail Brexit report is food for thought
A new report has estimated that food retailers and their supply chain could face a £9.3bn bill if the UK leaves the EU with no deal after Brexit. According to a new Barclays
corporate banking report, ‘Scale, Disruption and Brexit – a new dawn for UK food supply chains?’, a no deal Brexit would create an average tariff of 27 per cent for food and drink supply chains. Additionally, every consignment
of goods from the EU will require a customs declaration which starts at a minimum of £50. Last year, the UK imported
£48bn worth of food and drink, approximately 40 per cent of the total UK market. Of these, 71 per cent originating from within the EU entered the UK free of customs duties and other trade costs. Ian Gilmartin, head of retail at
Barclays Corporate Banking, said: “The food and drink industry is one of the country’s most important sectors, employing millions of people across the UK. “For the good of both UK
business and consumers, the potential impact on our producers and grocery retailers should be
‘The potential impact on our producers and grocery retailers should be front and centre of Brexit negotiations’
front and centre of Brexit negotiations. “Some products would avoid
tariffs, even in a no-deal scenario, but for most goods the effect of an increased tariff burden would be extremely damaging, and cheaper goods would be the hardest hit. 71 per cent of our imported food and drink comes from the EU, and 60 per cent of our exports go to the EU. “A positive agreement on trade
is essential if we are to protect UK exporters and avoid significant price rises for UK consumers.” The Barclays report also shows
that fully processed food and drink products, such as orange juice, will attract the highest tariff rate of 31 per cent compared to 29.5 per cent for semi-processed food and drink such as white sugar, and 9.7 per cent for primary products and raw materials like bananas.
Troubled aisle: Barclays says a no-deal Brexit will send the cost of food soaring
Coffee firm causes a stir on national TV
Espresso machine Fracino has been waving the flag for UK manufacturing on breakfast TV. The award-winning exporter was
invited by BBC Breakfast to respond to findings by the manufacturer’s organisation, the EEF, about claims that is the world’s ninth largest industrial nation, even though most commentators rate it much lower than that. The programme investigated
claims that the UK will take its place among the world’s five biggest industrial nations by 2021 if current trends continue, with Fracino managing director Adrian Maxwell saying that British manufacturing – which makes up 44 per cent of total exports and directly employs 2.6 million people – plays a vital role. He said: “As the heartbeat of
British manufacturing Birmingham has been instrumental in the UK’s rich manufacturing and engineering history. “Although the UK market has
faced major challenges over the last 12-18 months, mainly due to the uncertainty surrounding Brexit, our manufacturing sector is booming. “We’re seeing time and again
60 CHAMBERLINK November 2018
Fame at last: The Fracino factory has featured on the BBC
how the Made in Britain marque is coveted the word over – particularly in counties like Korea and Japan.” “Fracino is proud to be making a
key contribution with quality products which are commissioned by global brands.” A BBC crew filmed live at
Fracino’s manufacturing facility in Birmingham, where 5,000 machines are produced annually.
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