Winter Brexit may spike food prices, lead to product shortages: RPG
The group warned that the government seeks to end decades of complex commercial agreements “with seemingly nothing to replace them”.
Procurement services firm Regency Purchasing Group (RPG) warned that the UK’s exit from the EU would drive food prices to rise and lead to product shortages amidst the winter season.
In a statement following the victory of PM Boris Johnson in the general election, RPG said that suppliers and member businesses still fear the uncertainty of a no-deal Brexit.
Following Prime Minister Boris Johnson’s landslide victory in this month’s general election, it is now very likely that his mandate to ‘get Brexit done’ will be passed and Britain will leave the EU at the end of January 2020.
“Food and beverage businesses haven’t been able to plan and commit to a strategy for many months now, because so much of what we all do involves import and exports – and none more so than at this time of year,” RPG managing director Alex Demetriou said.
The group noted that the period between November and April, the UK relies heavily on the EU, as well as America and Africa, for food imports. It is only in the summer season that the country depends on its domestic production.
Citing data from the ONS, the group highlighted that some products have picked up inflation, like chocolate, pasta and fruit and vegetable juices have picked up inflation by chocolate (4.3%), pasta (17.7%) and fruit and vegetable juices (8.9%).
Doubting the pound’s performance after Brexit, RPG further warned that the government seeks to end decades of complex commercial agreements “with seemingly nothing to replace them.”
“Until we know more detail[s] about any trade agreements, there’s lots of concern among our members – and the industry as a whole – around tariffs, and in particular the trade between the UK and EU which has been tariff-free for decades,” Demetriou said.
Johnson’s EU withdrawal bill is set to be passed by the Commons this month.
