1/. We need to talk about food and the evidence given by the Food and Drinks Industry to the HofL Energy, Environment and Food Brexit Committee yesterday
““Food is a question of National Security”
@strandedatsea @nikkirobson1 @Forty40Kings
The evidence continued.
“Brexit WILL affect food supply and price.
“Food is a question of National Security”
“Brexit is a major disruptor of food security”
“If you cannot feed the country you do not have a country”
“We have a v vulnerable food system
Horticulture is the most vulnerable. Fruit and veg is catastrophic.
The effect of tariffs is not the only factor on food prices.
£22.5 Bn trade gap in food is catastrophic
We produce 50-60% of our own food supply. A further 30% comes from the EU. 9 % through EU 3rd country trade deals.
So 80% of our imported food supply is EU dependent.
Currently tariff free and with a smooth, efficient supply chain.
They also estimated that the reduction in food prices by imposing a zero tariff would only be 1% across the board and that took into account removal of regulation.
BUT regulation builds trust in the quality of the food chain.
NTBs will increase cost
Just Tariff inflation (ie not packaging and other NTB costs)
Beef. 5-29% increase
Cheddar. 6-32%
Tomato 9-18%
Broccoli. 5-10%
Tinned tomatoes 12%
They are currently contracting 12-18 months ahead without having any certainty from whence they should obtain their goods, or knowing for what tariff and NTB on-costs to budget.
When, they ask, will the government tell them what paperwork is necessary?
When is the Government going to employ customs officers and provide the critical infrastructure?
What about essential regulatory agencies and agreements?
If delays are long, supply ships will simply bypass Felixstowe.
Short food supply chains are environmentally friendly but also easier to protect in times of trouble.
In 1939 the Navy had 1500 ships. Now it has 77.
Short supply chains matter.
parliamentlive.tv/Event/Index/25…
The CBI has reported that by the end of April 80% of their members responded that they would have started IMPLEMENTING their plans for a hard Brexit. 35% have already started.
Today Japanese ambassador in Downing Street unusually candid after PM meet with Nissan, Toyota, Honda etc:
“If there’s no profitability of continuing operations in UK no private company can continue operations...simple as that...”
“.. this is all high stakes, all of us need to keep in mind.”
They went on to spell out that they had been invited to invest as a door play to Europe. The Govt has a duty to deliver it. CU was mentioned. Hint.
Patience with the Government is wearing v.thin