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The Impact of Brexit over Small Food Businesses

The-Impact-of-Brexit-over-Small-Food-BusinessesAmid all the uncertainties surrounding Britain’s fate over Brexit, it’s time for the small food business industry to ponder over. The result of the EU referendum vote and the chances of Article 50 being triggered, small businesses in the food industry should start thinking about what the impact of Brexit would be on their business.

The confusion is everywhere as well as anxiety spinning over the people involved in the business industry. Many are asking the question that what would be our future relationship with the EU after Brexit. All these doubts and questions make it extremely difficult to judge whether Brexit will impact small food businesses or not.

In the meantime, we can present you with a scenario of what is going to change and how that would affect the industry.

A significant price hike of the produce

The-Impact-of-Brexit-over-Small-Food-BusinessesAccording to a recent report of The Independent, it would cost the UK over £60 billion a year to leave the single market. And, added to that worry this month the pound saw a drastic fall against the euro which is the lowest in three years.

The Brexit secretary told the parliament that there are very little options for them to stop the speculative comments which caused the pound to take the roller coaster ride. The secretary also added that this will continue for the next two-and-a-half years. So, it is very convenient that if Brexit ends up with an unhealthy economy and the instability of pound, then the price of food will likely see the rise.

The wilting effect of pound will definitely have a prolonged impact on the overall cost for small food business and that is at every stage of the production.

Food standards are protected by EU laws

The-Impact-of-Brexit-over-Small-Food-BusinessesThe EU food standards and hygiene regulations make sure that all the food produced and traded in the EU maintains the same standard. This simple process helps the consumers all across Europe to trust the safety of their food products irrespective of their origins.

But, the Brexit might change that scenario. After departing from the EU, the UK has to establish its own Small Food Businesses. They need to comply with the standards of the EU and it is very much on the card that the two standards might not be the same. This will make trading with the EU more complicated and liaising with each other will be more difficult for the two food regulators.

On the off chance that getting food and produce sourced from inside the EU turns out to be increasingly complicated and along these lines takes more workers and hours to accomplish. And, definitely it will turn out to be costlier too.

It could likewise imply that the ensured status of conventional British items, for example, Cornish pasties, could be in danger, as the EU laws are as of now acting to secure them.

More control and more improvement

The-Impact-of-Brexit-over-Small-Food-BusinessesNotwithstanding, the chance to re-draft this enactment will likewise allow the UK to improve it, including those concerning animal health and welfare.

For instance, the administration would most likely detour the long supply chains related to the current ‘farm to fork’ framework which ensures food safety. While implementing our own safety methods with a shorter chain of supply, the monitoring on the nutritional content of the food would become much easier, and to stay away from further occurrence of food fraud like the horsemeat scandal.

However, it is very unlikely that Brexit will have an overwhelming effect on the food industry. But, as all EU legislation has been endorsed into UK law too, so it could become very problematic to change. The Nationwide Caterers Association has already hinted that food safety legislation will occupy the priority of the Government’s plan while making the Brexit negotiations.

May 4, 2020

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