View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 7, 2019

UK food outlines Brexit stockpiling cost impact

A members' business confidence survey carried out by UK industry body The Food and Drink Federation has revealed the impact on costs of stockpiling goods.

By Leonie Barrie

A members’ business confidence survey carried out by UK industry body The Food and Drink Federation (FDF) has found nearly half of respondents have seen their businesses impacted by increased costs as a result of stockpiling measures linked to Brexit.

Some 47% of respondents, who have added to their stocks because of fears of shortages when the UK leaves the European Union, said the higher costs had had a “key impact” during the second quarter of 2019.

Similarly, 39% of respondents reported a decline in the availability of warehousing – because of Brexit stockpiling – as a key impact on their business in the quarter.

The FDF said since it began tracking business confidence in the first quarter of 2018 net confidence has declined by 38 percentage points. The top five risks identified by members in its latest survey were Brexit-related.

Concerns included the risk of a no-deal Brexit, exchange rate volatility, cost of ingredients, UK import tariff uncertainty and border/customs issues.

However, when businesses were asked how prepared they would be for a potential no-deal Brexit on 31 October compared with March/April – the original departure date – only 19% of respondents said they were less prepared, while 57% reported they would be as prepared.

Earlier today (7 August), the FDF called on the UK government to dispense with certain aspects of existing competition laws in the event of a no-deal Brexit scenario.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food