Post-Brexit import checks could impact hospitality sector, industry boss warns

The UK’s post-Brexit border strategy risks further pushing up food prices, which will impact operators and their customers, the Fresh Produce Consortium (FPC) boss has warned.

Nigel Jenney, FPC chief executive, is alerting the government its members will not be able to absorb the extra cost of charges levied for import checks on EU and global good entering the UK and that businesses will have no option other than pass on the import costs, which are due to be introduced in the new year.

The trade body, which has over 600 members representing 70% of the UK fresh produce supply chain, added that the new charges’ estimated additional annual cost will be more than £10m, and will have to be passed on to operators, and ultimately consumers, fuelling further food inflation.

Food inflation is already at an all-time high; overall food inflation was 19.1% in the 12 months to March 2023, with the general rate to the same month 10.1%.

Rachel Dobson, managing director of hospitality buying specialist Lynx Purchasing, said hospitality operators will be concerned about any development that will further increase food prices. She added fresh produce suppliers often operate on very tight margins, so they have “little choice” when it comes to passing any increase in costs onto consumers.

Dobson said the advice to operators is to buy produce when it’s in season. She added: “The reality, though, is that there are always certain times and particular products where the market is reliant on imports. Operators should keep talking to suppliers so they know when any price increases are likely to be implemented and can plan accordingly.”

UKHospitality chief executive Kate Nicholls added operators are doing what they can to mitigate rising food and drink costs but should import duties rise, “they would be one of many factors driving the increasing costs of doing business in the hospitality industry”.

Nicholls added if hospitality businesses are to survive, the government must “step in and introduce measures to tackle the most immediate threats,” such as rising energy costs, and food and drink inflation.

The FPC said the current border proposals would add not only add cost, but also potential delays and disruption to imports of fresh produce.

Nigel Jenney, chief executive at FPC, said he is “very sympathetic” to the costs and delays that might be placed upon the hospitality sector but added the additional costs are driven by the government’s decisions and his sector cannot absorb such a hike in prices.