‘13 weeks from exit and we don’t know rules’

ANALYSIS FOOD maker Baxters is laying Brexit contingency plans to maintain its supply of ingredients such as tomatoes and the cans in which its products are sold.

The firm has outlined how it is preparing for the weeks and months ahead as the Westminster Government appears to stumble through the process.

Mike Mcgill, Baxters’ chief financial officer, said the firm is setting out the plan in the face of an uncertain future legal framework.

He said: “We’ve been looking at supply chain, which is where we see our biggest issue in the short term. The biggest risk now is no deal.

“If you move to a withdrawal arrangement you at least then have 21 months to then work out what the rules are you are moving to, but right now we are 13 weeks away from the exit date and are not sure what rules are going to apply on that date.”

The company faces logistical concerns over importing £15-18 million worth of products annually from Europe.

Mr Mcgill said: “We are looking at the prospect of ordering additional raw material this side of Brexit to build stocks to ensure we have continuity of manufacturing come the other side.

“That is the simplest solution that we can think of at present.

“You’d be talking about packaging, cans and ends and caps, there will be tomatoes, anything that is imported, chorizo, onions, so a huge range of different products.”

Audrey Baxter, executive chairman at Baxters, said: “We use authentic ingredients and that’s what we will continue to do.”

However, she added: “There is a deep concern over what is going to happen at our ports ... and the clock is ticking aggressively.”