Expected price increases to change product sourcing after Brexit
May 21, 2018
With less than a year to 29th March 2019 for Brexit, an increase in food prices is envisioned in the absence of a trade agreement between the UK and the EU.
If no trade agreement is formed, the average tariff on food imports will be expected to rise by 22%. Even if the UK can iron out issues with the EU with a negotiated free trade, food prices will still increase not less than 3.8%. Even this smaller increase will create a large impact, as currently 41% of food consumed in the UK has the input of negotiations made by the EU.
EU imports to the UK cannot be tackled by producing more in the UK or importing from non-EU countries. Currently, UK businesses are finding it difficult to secure contracts with the EU counterpart past March 2019.
UK businesses need to start looking towards procurement specialists to best position their purchasing, ready for the change in March 2019. This will help source the needed products at the best possible cost as procurement consultancies have plans in place to help businesses succeed despite the impact of Brexit.