PRICE INCREASES

BREXIT: THE FOOD FOUNDATION / SHEFS

‘5 A DAY’ CHALLENGE TO GET EVEN STIFFER UNDER ‘NO DEAL BREXIT’

A NEW BRIEFING PAPER CLAIMS THAT NEW TRADE TARIFFS THAT WILL APPLY UNDER A “NO DEALBREXIT” WILL INCREASE THE PRICE OF FRUIT AND VEG IN THE UK.

As Prime Minister Boris Johnson prepared to fly to Brussels for urgent talks on a post-Brexit deal with the European Commission President Ursula von der Leyen, a new briefing paper claimed to show that new trade tariffs that will apply as a result of a “No Deal Brexit” will increase the price of fruit and veg in the UK by an average of 4% and make it even more expensive for families to purchase a healthy diet.

In the UK, fruit and veg consumption is already far below the recommended level of at least five portions a day needed to help prevent disease and promote health. The average adult eats just under four portions a day, and teenagers consume even less. There is also a big difference between income groups, with the highest income groups eating one and a half more portions per day than the lowest.

Preliminary analysis from the SHEFS consortium, a global research programme funded by the Wellcome Trust, also shows that some products will rise even more on 1 January, with tomatoes set to increase in price by 9%.

A No Deal scenario would mean imports from the EU would be automatically subject to the new higher UK general tariffs, with increased food prices impacting the more deprived groups of society the most.

The UK is highly reliant on fruit and vegetable imports, currently importing 65% of its total supply. The UK produced 3.1 million tonnes of fruit and veg last year – a quarter of what the UK population needs to meet Eatwell Guide recommendations. In the event of a No Deal Brexit, imports from the EU would automatically be subject to new UK ‘Most-favoured Nation’ tariffs. In addition, imports from non-EU countries may also be subject to increased tariffs. As a member of the EU, the UK benefitted from around 40 free trade agreements signed by the EU. The UK has so far signed bilateral deals replicating just 22 of these agreements.

If tariff increases are passed directly on to UK citizens, the average British family would pay 4% more for their fruit and vegetables from 1 January 2021. For a family of four (two adults and two children), this would mean an increase of £25-28 a year to their fruit and vegetable bill. If families increased their consumption to the recommended five-a-day this would cost £65 per year more for a family of four under a No Deal scenario.

The report also warns of the potential for additional costs and significant delays at UK borders, a lack of cold storage capacity in the UK and the potential for shortages and concomitant food prices rises. These issues will particularly influence perishable food products, including fruit and vegetables.