Food industry buoyed by tariff-free deal but warns of extra costs

When the Brexit deal was finally“done” on Christmas Eve, there was widespread relief in the food industry that tariffs on exports would be avoided.

But producers and exporters still face increased costs due to the additional paper work that now needs to be completed when sending produce to EU countries.

For some, most notably fishing communities, there is alarm; for others there is concern over the threat of delays and increased costs – but there are those who also see new opportunity.

Colin Smith, chief executive of the Scottish Wholesale Association, said: “There is much detail to be pored over and businesses importing fresh products and ingredients are understandably concerned about the prospect of increased admin and paperwork, which could have a knock- on effect on the UK supply chain, reducing choice for shoppers and increasing costs too.”

Master chef finalist Dean Banks, who has experienced big success for his St Andrews-based Ha a rat Home food delivery service throughout the pandemic, says while the EU market is one he definitely wants to branch into, the US is top of his list.

He explained: “We’ve actually been looking into sending our boxes to New York next-day delivery.

“I’ ve got loads of friends who live in Switzerland and they have asked about getting the boxes delivered over there.

Elspeth Macdonald, chief executive of the Scottish Fishermen’ s Federation, said although members are glad to be out of the much-criticised Common Fisheries Policy, the deal “falls very far short of the commitments and promises that were made to the fishing industry by those at the highest level of government”.

She said :“A fundamental error was made by the government not securing sufficient quota uplift in some key stocks to take account of international swaps.”