BREXIT
Brexit
- how foodservice and catering operations can prepare Oliver Hall, managing director at allmanhall – an independently owned food procurement company - looks at the potential impact of Brexit on the foodservice sector with advice on how to become as agile as possible in these uncertain times. PROGRESS? Whilst Brexit negotiations continue in earnest, it is difficult for those of us on the outside to see what progress has been made. So, what can we assume? Well, Michel Barnier has tweeted a photograph of himself at a London sports field in search for a level playing field. So we can assume that the EU red line on workers’ rights, environmental standards and state aid is still a big point of contention… The UK’s chief negotiator, Lord Frost, maintains that good progress has been made but wide divergences remain and that businesses must prepare for the change from 31 December. We can therefore surmise that the UK still is looking for solutions that respect national sovereignty, including fishing. Both sides seek solutions to the same unresolved sticking points, whilst we wait to see if time constraints can assist in achieving joint concessions and consensus. It is worth noting that
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if an agreement is reached it is unlikely to be comprehensive, and thus negotiations will continue into the New Year, come what may. Is it plausible that some on the UK side may even consider if an advantage can be gained from negotiating from a position of no deal in the New Year. BREXIT KEY DATES The key date remains 31 December 2020. So far, both sides have posted, and missed, key dates, so it is best to assume that the situation is very fluid, and anything is possible up until the 31 December. We do know that an agreement needs to be ratified in the European Parliament beforehand, but it has been mentioned that this could even sit after Christmas if necessary. RISKS AND IMPACTS Arguably, the agri-food sector is the most heavily impacted sector in the event of a no deal outcome with the EU. In trade terms, food and agricultural products are the
Background Oliver Hall co-founded allmanhall (www.allmanhall.co.uk) in 2006. Whilst working on growing the business, he studied with the Chartered Institute of Procurement and Supply to achieve MCIPS qualification, and this expertise in procurement and understanding of the complex factors that affect the supply chain is now a key part of allmanhall’s solution for clients, assisting them with successful management of, and collaboration with, their supply chains. most heavily impacted by tariffs and would therefore experience the highest cost increases. Other factors also play a significant role, such as the strength of Sterling, border disruption, regulatory standards, and access to seasonal workers which is impacted by the end of freedom of movement for European workers from 01 January 2021. The farming industry employs 70,000 seasonal workers a year, mainly from Eastern Europe, and urgently needs to understand the rules from January, which have yet to be announced. Lack of clarity impacts advanced crop production planning, which includes, land rentals, seed procurement and labour scheduling. G’s Growers, for example, one of the largest growers in Europe are
December 2020
