Cheese could become a luxury in the UK, thanks to Brexit
Bad news for those who love cheese, butter and yoghurt: everyday dairy products could be come luxury items after the UK leaves the EU, according to a new report.
Research from the London School of Economics, published in The Guardian and commissioned by dairy cooperative Arla Foods, found that additional trading costs and limited access to labour could lead to higher prices and a restriction on certain goods after Brexit.
Arla said the UK could face a 'dairy dilemma' and has warned that it could become much more difficult to import dairy products from Europe. This could lead to a shortage both of dairy staples and speciality cheeses, where the production capacity is already limited, the company added.
The report found that even if an agreement over trade is struck, every extra seven minutes of port check times will cost a minimum of £111 extra per container. In addition, the Customs Declaration System, which is designed to handle a maximum of 150 million declarations per year, will need to deal with around 250 million after Brexit. Further costs have been predicted due to subjecting dairy products to checks at the border.
Ash Amirahmadi, UK Managing Director at Arla Foods UK, commented: 'Our dependence on imported dairy products means that disruption to the supply chain will have a big impact. Most likely we would see shortages of products and a sharp rise in prices, turning every day staples, like butter, yoghurts, cheese and infant formula, into occasional luxuries. Speciality cheeses, where there are currently limited options for production, may become very scarce.'
Amirahmadi acknowledged that Brexit 'might bring opportunities' to the UK industry, but he warned that 'building the infrastructure for us to be self-sufficient in dairy will take years.' He is now calling for a 'frictionless customs arrangements and ready access to key labour in the years ahead'.
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