Bord Bia Barometer – customs and tariffs greatest concern
Bord Bia has published its Brexit Barometer with a range of pressures and opportunities highlighted in its findings. Its a must read, not just for the food sector but for any business in export mode.
Topping the list of concerns are potential new customs controls and tariffs. Overall it says there is a lack of understanding in terms of customs compliance and potential tariff costs, with limited customs expertise within the industry.
It also say there is a realisation amongst Irish exporters that dependence is too great on the UK market and diversification will be important going forward. Over 80% of respondents believe there are viable alternative markets for their products however sectors such as beef and cheddar cheese will be challenged to find replacement markets. That’s a big slice of the food market.
There are other exposures too including in terms of supply chain risk management with a low level of preparedness common and 68% of respondents unsure as to whether their supply chain partners are Brexit ready.
It adds that In terms of exchange rates, an exchange rate of 0.89 would cause severe difficulties for 39% of respondents while a rate of 90p – 94p would cause difficulty for over 80% of the 139 companies surveyed.
It all leads to Bord Bia saying Brexit will demand a nuanced and concerted response from every level of the food industry. It will require new skills, new approaches and new thinking. We will need to be innovative, agile, informed and prepared as never before.”