Farm Ireland

Wednesday 13 December 2017

Majority of food exporters don't have marketing plan for post Brexit UK

68% of exporters unsure whether their supply chain partners are 'Brexit ready'

Catherine Day, former Secretary General of European Commission with Bord Bia CEO Tara McCarthy.
Catherine Day, former Secretary General of European Commission with Bord Bia CEO Tara McCarthy.
Margaret Donnelly

Margaret Donnelly

Over half of the respondents to Bord Bia's Brexit Barometer are heavily dependant on the UK for exports, with it contributing 53pc of their exports by value, but the majority don't have a plan for the UK post Brexit.

According to Bord Bia’s Brexit Barometer, almost 80pc exporters surveyed believe there is still significant potential for future growth in the UK market, despite the fact that 85pc of respondents are facing competition from UK based suppliers and 61pc don’t have a marketing strategy for the market. 

Over 80pc 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.

The Minister for Agriculture and Food Michael Creed told the briefing that shelf space on UK supermarket shelves has been hard won and Ireland won't be giving up on the UK.

The findings also show that ncreased lead times, especially when related to short shelf life products, and a complex and intense supply chain, is a key issue facing the industry.

Exporters with short shelf life products are most at risk, with the mushroom industry facing the greatest challenge, as the sector’s main product has a shelf like of less than seven days. Likewise beef mince is challenged due to the complex and intensive supply chain, it found.

Further, there is a lack of understanding around the terms of customs compliance and potential tariff costs, with limited customs expertise within the industry. Just over 30pc companies have limited or no experience in complying with official requirements relating to the importation or exportation of goods from/to non-EU locations, while 80pc have not considered the VAT cashflow implications of Brexit.

Some 139 food, drink and horticulture exporters completed Bord Bia’s Barometer, a risk analysis tool designed to help individual companies assess their exposure to six specific risk areas associated with Brexit – routes to market, customs and tax, supply chain, trade, currency and human resources.

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