UK farm businesses urged to prepare for EU agri-food deal

Environment Secretary Emma Reynolds has today (Monday, March 5) outlined how UK exporters and importers are expected to benefit from the new Sanitary and Phytosanitary (SPS) agreement with the EU.

Northern Irish farmers and agri-food businesses have also been encouraged to start preparing for major changes under the future SPS agreement between the EU and UK.

According to the Department for Environment, Food and Rural Affairs (Defra), the government is negotiating "to make trade with the UK’s biggest market and closest neighbour easier, cheaper, and quicker". 

"This will free British food and farming businesses from the mountains of paperwork, unnecessary delays and spiralling costs of current arrangements, cutting red tape, opening opportunities for growth for large and small importers and exporters across the country, and helping put British produce back on European tables," Defra said.

According to Defra, since 2018, the value of exports of food and agricultural products to the EU have fallen by 22%, a drop of almost £4 billion in real terms.

"That’s meant lost profits, shrinking markets and, in the worst cases, businesses closing their doors," Defra said.

With the EU agri-food deal, Defra said that "trade will flow faster, meaning imports of fresh produce will reach supermarket shelves quicker and supply chains will become more resilient, all together strengthening food security here and in Europe.

"Businesses will benefit from a simpler, cheaper process for moving most agri-food goods between Great Britain and Northern Ireland, protecting consumer choice in Northern Ireland and strengthening the UK internal market."

Environment Secretary Emma Reynolds said the UK government is "resetting" relations with the EU to "to make trade easier and cheaper, and deliver tangible benefits for British businesses".

"We are talking about real businesses, real employers: the Somerset cheesemaker with export trade halved, the Welsh shellfish trader turning down orders because their catch isn’t fresh by the time the paperwork is done, the Scottish farmer who can no longer sell seed potatoes to customers they’ve supplied for decades. 

"By reducing delays and unnecessary paperwork, this deal will help keep shelves stocked, protect jobs and put downward pressure on food price inflation for families across the country."   

Business and Trade Secretary Peter Kyle added that the deal improve market access for UK agri-food produce.

"More great British produce will be on European tables thanks to this agreement which will reduce barriers for exporters and create new opportunities for farmers and businesses across all parts of the UK." 

The government has launched a six-week call for information to "understand how it can best support business to make to most of this opportunity".

It has also published more detail on the scope of the agreement, and which sectors the deal will focus on to help all businesses understand and prepare for what is ahead. 

The government is working toward a mid-2027 start date for the new agreement and is calling on businesses in the agri-food sector to start getting ready now, including those that do not currently trade with the EU. 

Farm businesses

Since last May, the government has been engaging with businesses and trade associations "to understand how the new deal could affect them", Defra said. 

"The government knows that some businesses require longer to adjust to the new arrangements and will work with them to ensure a smooth transition." 

The costs to businesses expected to be removed by the deal include: 

  • Export Health Certificates costing up to £200 for agri-food goods; 
  • Phytosanitary Certificates costing approximately £25 alongside inspection fees of at least £127.60; 
  • Organic Certificates of Inspection, required for the export of organic lamb and cheese, costing on average £35; 
  • Port Health Authority (PHA) identity check fees on meat and dairy exports adding £31 per load on average; 
  • Sampling. which can add approximately £1,200 to a cheese load, £1,400 to a salmon shipment, £440 to a load of apples, and £1,200 to a beef load.

"The government is aiming to finalise negotiations on smoother trade and secure the best deal for UK businesses later this year, so they can begin to reap the benefits from mid-2027," Defra continued.

While negotiations remain ongoing, businesses are being encouraged to take early steps to prepare for the changes ahead. 

Under the deal, the government has committed UK businesses involved in the production or processing of plants, food, animals and animal products to aligning with EU rules.

This applies to domestic producers and those trading with the rest of the world, meaning businesses that do not currently export may also need to adapt their practices. 

Businesses should continue to follow the current trading requirements until any new agreement takes effect.

This includes continued compliance with the Windsor Framework until such time the agreement removes the need.

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