www.bifa.org


Policy & Compliance


BIFAlink


market, down by 71%, whilst those to Germany, Spain and Italy declined by more than a half compared with Q1 of 2020. In total this amounts to a decline of £2billion for the food and drinks industry. Overall trade between the UK and the EU fell by almost a


quarter in the first three months of the year, as Brexit and the COVID-19 crisis disrupted business, according to figures produced by the Office for National Statistics. This decline was much larger than the 0.8% drop in trade between the UK and the rest of the world, indicating that the new rules had had a significant effect at the start of the year. It must be said that the initial decline may be a short-term


disruption and that there will be a gradual recovery, although the extent of this remains unclear. There are some indicators of recovery; UK exports to the EU in March 2021 rose by 8.6% to £12.7 billion, which is close to the £13.7 billion recorded in December 2020, just before our departure from the EU. Make UK, the manufacturers’ organisation, has commented


that the supply chains of its larger members, although slower and more expensive, are beginning to see a degree of certainty and stability return. It is noted, however, that the SME sector is still encountering


significant issues. The reader might recall pictures of lorries carrying salmon being held up and the product being thrown away due to delays for checks and incorrect paperwork. Larger salmon farmers, now familiar with the rules and paperwork, have slower supply chains but their produce does get through. Although this slower transit time reduces the price premium for Scottish salmon, the statistics do indicate that tonnages have held up. However, again, smaller producers and fisheries are still encountering significant problems limiting their access to EU markets.


Model focused on introducing export customs and other regulatory procedures at the UK frontier in order to allow UK products to enter the EU. The UK frontier controls for goods entering from the EU have


not been as comprehensive. BIFA has complained to government, including to a Cabinet minister, about the significant non-compliance stemming from the Delayed Declaration Scheme, and it has been disturbing that it has taken nearly seven months for government to devise some form of response.


Numerous problems To date, from a trade perspective, numerous problems have been encountered and in part overcome – at least sufficiently to permit supply chains to keep moving. The problems encountered included increased bureaucracy and costs set against decreasing traffic levels and capacity. With the possible exception of movements of foodstuffs, in the first six to eight weeks after 1 January 2021 government officials in the EU and UK were as facilitative as they could be. Some sectors have been hit particularly hard; UK food and


drink exports to the EU fell by 47% in the first quarter of this year compared with the same period in 2020. UK exports to all EU member states declined significantly in Q1, with sales to the Republic of Ireland, traditionally the sector’s biggest export


August 2021


Some sectors have been hit particularly hard; UK food and drink exports to the EU fell by 47% in the first quarter of this year compared with the same period in 2020.


Mixed groupage market, These initial problems hit the haulage industry hard and there is evidence presented by the Road Haulage Association that many EU hauliers preferred to return empty to the Continent rather than risk facing delays. There appear to be particular problems with regard to the


mixed groupage market, which tends to serve the smaller trader. Some hauliers/agents withdrew from the market at least temporarily to resolve issues. Also, we are hearing that greater restrictions are being placed on the commodities that forwarders are willing to handle, or hauliers carry. In addition, we are seeing numerous other problems, which


may not attract significant attention but are having impacts. There has been an ongoing driver shortage for many years – figures vary as to the extent, but it is reported that approximately 15,000 drivers left the UK to return to the EU and that due to COVID-19 restrictions 30,000 HGV tests have not taken place. This is probably the issue that will attract the most public


attention to our sector because it has the potential to disrupt deliveries, visible as empty supermarket shelves, and lead to longer lead-in times for products. Other factors that have impacted trade are the costs associated with safety accreditation, which is particularly


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