Food supply cost to rise due to Brexit—Economic group warns

Food supply cost to rise due to Brexit—Economic group warns

The UK’s long-awaited Brexit may have some dire economic impacts on food costs. Food and trade experts have warned consumers to expect some extra charges on food and drinks.

Food and drinks price to increase in the UK

The cost of food and other essential products is expected to increase because of the new Brexit deal according to industry sources. There could also be food shortages in neighboring Northern Ireland and Wales. These shortages are expected to be visible in the stores and supermarkets. The UK cabinet office has said it is working with all businesses to solve these issues and avoid unnecessary costs.

According to the Food and Drink Federation chief executive Ian Wright, it is unavoidable not to experience both long and short-time price costs due to changes in supply chains. An extra food supply change prices will occur because of additional paperwork that was absent when the UK was with the EU. Mr. Wright made the statement when he was invited to the European Union committee on Friday.

Retailers and consumer could share the final food cost

“ Until the Brexit deal changes in some aspects, there is going to be a re-engineering of all EU-UK supply chains over the next five to ten months. “

“ However, it remains unclear if these costs will be passed on to consumers or shared by retailers and wholesalers alone. “ He ended.

Food and drink manufacturers work on strict measures due to the problem caused by the COVID-19 pandemic and because of the shutting down of the hospitality industry. It will be difficult for only retailers and wholesalers to absorb additional costs due to fresh tariff rates from EU nations.

According to trade experts, there are some bureaucrats the UK should expect on import and export which will affect the cost and timely delivery.



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