How to keep trade with
CEO REVEALS STRATEGIES TO SMOOTH PATH FOR EXPORTS TO EU – FROM SORTING OUT LOGISTICS TO GETTING THE RIGHT REGISTRATIONS
just as important as ever.
And when it comes to moving animals and animal products, plants, fruit and vegetables between the UK and the EU, taking some key steps will ensure traders are ready for new rules at the border.
“Keeping business moving is the priority,” says Ross McMahon, CEO at organic infant formula company Kendamil. “We all knew this was coming at us, so well before the transition period ended we had people on training courses, getting up to speed with the proposed changes. It meant that come the start of this year, we were in a pretty good place to begin.”
PREPARATIONS
Using Government online tools, employees at Kendamil, a family-run firm based in Cumbria, made early preparations. They registered for an EORI number – essential for trading with the EU – and established which new documents staff would need to prepare for when the new rules took effect on January 1.
“Previously we needed veterinary certificates just for outside Europe, but now we need paperwork within the EU as well,” says Ross (right).
“We have registered for our Export Health Certificate and as an exporter with the EU’s Trade Control and Expert System portal (TRACES), which means our customers across the EU can now notify the relevant authorities about the products they’re buying in. It keeps everyone right.”
And while things have gone relatively smoothly so far, Ross explains there have been some hold-ups as things continue to get underway.
“At the beginning, clearly a lot of people had to get themselves onto the new system. That caused some hassle and back-ups.
“As well as that, people were slow to send lorries to the ports because they wanted to avoid any potential hold-ups, but already that’s all improving.”
Because logistics are outsourced, Ross says that the freight companies delivering Kendamil’s award-winning baby formula to 30 countries are a key cog in the wheel.
“Working closely with our logistics partners is really important,” says Ross. “The reality is there have been lots more entries for agents to do, and we’ve been able to help them out with that.
“But I’m sure things will become clearer once everyone gets used to the systems.” Even with preparation done and a set of rules now in place, Ross explains that the work is far from over. Kendamil will keep at it to ensure the business carries on as effectively as possible. “We have a team of logistics people internally and things are going well so far, but we will probably expand that as things carry on,” he says. “We have also applied for Government support to upgrade our software systems because without doubt there is additional work involved in all of this.
“At some points it might seem like there’s a lot to take on, but if you’re in business, if you’re an entrepreneur like I am, then you’re optimistic and resilient and you tackle every challenge head on.
“I really believe we’ll come out of this stronger. We’re winning business all the time. The key is to work through each stage of the process and make the very best of it you can. There are always opportunities.”
If you are optimistic and resilient there are always opportunities. We’re winning business all the time
ROSS McMAHON CEO, KENDAMIL
THE number of young people out of work in the South West has more than doubled during the coronavirus pandemic as jobs were lost in retail and hospitality.
The number of people aged between 18 and 24 claiming benefits rose by 171% in the region between November 2019 and November 2020.
There were 31,588 youngsters claiming Universal Credit (UC) just before the nation went into its third lockdown. That means the under 25s account for more than 18% of the total of 170,106 SW claimants.
The rise in youth unemployment was particularly steep in Exeter, where it leapt 215% to 696. In Plymouth there was a 94% rise to 2,043.
The pandemic appears to be hitting the young hardest nationally, with 60% fewer workers aged under 25 – that’s 425,000 youngsters – on payrolls, a sign of the toll taken by the crisis on young workers.
Joanne Harris, Jobcentre Customer Services manager for Devon and Cornwall, said the problems faced by hospitality and retail businesses because of the Covid pandemic could explain the number of young people claiming benefits.
She said there has been a focus on helping young people in the South West find jobs, and she highlighted the Government’s Kickstart scheme, a £2billion programme designed to put youngsters receiving benefits at the head of the queue for six-month placements with employers.
“We want to get more local employers involved with Kickstart,” she said. And she stressed that while Britain’s jobless rate has surged to its highest level for nearly five years, there are “early signs” of a stabilising jobs market, and several major South West employers are recruiting.
She said fast food giant McDonalds has planning consent to build an outlet at the town’s retail park and create “a raft of new jobs”.
In Exeter, the Ivy restaurant is hiring, ahead of opening its city centre branch, and supermarket chain Aldi is investing £13 million in new and upgraded stores in Wiltshire, creating about 90 jobs.
She said that while restaurants, pubs and hotels are still not able to open, due to ongoing lockdown restrictions, “they are getting ready for when they can return”.
The Office for National Statistics (ONS) said the rate of unemployment natoonally hit 5.1% between October and December – up from 5% in the previous quarter and its highest since early 2016.
It also revealed that there were 726,000 fewer workers on payrolls in
January than before the start of the coronavirus crisis.
Overall, unemployment stood at 1.7 million between October and December 2020, up 454,000 over the year, marking the biggest annual increase since the financial crisis.
But the statistics also showed the number of payrolled workers rose by 83,000 between January and February in the second monthly increase in a row.
Chancellor Rishi Sunak pledged to set out his job support plans in next week’s Budget amid calls for more help from some of the sectors hammered by the crisis.
Mr Sunak said: “I know how incredibly tough the past year has been for everyone, and every job lost is a personal tragedy.”
“At the Budget next week I will set out the next stage of our Plan for Jobs, and the support we’ll provide through the remainder of the pandemic and our recovery,” he added.
The furlough scheme has been helping cushion some of the blow of the pandemic, though there are fears of a spike in unemployment when it comes to an end.
Jonathan Athow, deputy national statistician at the ONS, said: “The latest monthly tax figures show tentative early signs of the labour market stabilising, with a small increase in the numbers of employees paid through payroll over the last couple of months.” He said the proportion of people neither working nor looking for work had also stabilised after surging at the start of the pandemic, with “many people who lost their jobs early on having now started looking for work”.
Figures showed there was also a welcome rise in vacancies between November to January, up 64,000 on the previous quarter.
The claimant count – another measure that includes people working with low income and hours as well as people who are not working – also decreased slightly in January, down 0.8% month-on-month to 2.6million. But this is still double the level seen in March 2020.