Food sector fears leaving the UK “bottlenecks” trade threat

  • Food sector fears leaving the UK “bottlenecks” trade threat
    Independent.t. E.
    Disruptions in the supply chain is one of the biggest risks faced by Irish industry of food and beverages, according to a new report from Bord Bia.
    https://www.independent.ie/business/brexit/food-sector-fears-brexit-bottlenecks-trade-threat-37191119.html
    https://www.independent.ie/business/farming/article37190911.ece/63590/AUTOCROP/h342/2016-12-06_bus_26875694_I1.JPG

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Disruptions in the supply chain is one of the biggest risks faced by Irish industry of food and beverages, according to a new report from Bord Bia.

As the British exit from the EU looms large, the food and drink supply chain logistics, success strategies, the report notes that increases the time, especially with the short shelf life of food products and beverages, in combination with a complex supply chain is a major problem for the industry.

Significant risk, which was defined the potential for violations of the coherent movement of Irish exports through the UK to other markets. These streams of product may be subject to future tariffs or customs delays.

Currently, the food products and drinks can move freely within the EU without customs checks, and there are no restrictions on the amount of import or export, or any other trade restrictions.

Requirements for documentation accompanying shipments to the EU minimum, according to Bord Bia.

But it is likely that these factors will vary trade between Ireland and the UK after the UK leaves the EU in March next year.

In order to reduce the impact of this new supply chain to service the existing markets needs to be studied, the report found.

“We are in for serious challenges for Irish companies in the sector of food and beverages, many of which rely heavily on the UK land bridge to access other markets in the EU,” Shane Hamill, foreign trade Manager at Bord Bia, said. “It is important that companies assess or test the readiness of the British exit from their partners in the supply chain, their routes of access to markets and channels for accessing raw materials.”

The report follows the release of the barometer of the UK out of the EU Bord Bia in June, which showed that nearly nine out of 10 respondents in the food and beverages sector stated that their business model is “moderately or severely dependent” on reducing costs in the supply chain.

Meanwhile, two-thirds of respondents State Agency stated that their business model is sensitive to increase in terms.

The latest report from Bord Bia aims to help manufacturers of food and beverages to determine the transaction partners, to establish more effective distribution channels and to identify possible strategies for reducing costs in the supply chain.

“Many companies will have to consider direct routes to the EU and possible the campaign closer to European markets if it is economically more profitable,” said Mr. Hamill.

“It is important that all companies have a strategy to reduce costs, analysis of product and profitability of the market, as well as plans of emergency action for a number of complex scenarios the UK out of the EU.”

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