With Brexit in sight, industries all around the world will be affected by one of the biggest economical moves in history. We dive into how Brexit will affect the food and beverage market.
The Impact of Brexit on the Food and Beverage Industry and what to Expect
The food and drink sector is the largest remaining manufacturing sector in the UK, contributing over £28bn a year to the economy. This sector relies heavily on the import-export trade, particularly with other European Union countries.
The food industry will experience pressure from consumer confidence as well as from international suppliers. In 2017, 60% of Food and Drink Exports were to countries that make up the EU and that 72% of Food and Non-alcoholic Beverage imports to the UK were from EU countries. This shows that, within the Food and Beverage sector, trade within the EU is strong. In order to keep this level of trade, and limiting the freedom of this trade, tariffs will have to be imposed. These tariffs will eventually make their way to consumer’s pockets.
Furthermore, the impact on Human resources within the Agriculture and the Food and Beverage sector is predicted to be substantial. This is because 98% of the seasonal workforce within the agricultural sector originate for EU countries, while it is estimated that there are 130,000 non-UK nationals working within the Food Manufacturing sector.
What that Means
While the discussions continue, the economy remains in a somewhat unstable state. The future of trade is dependent on the relationships that will be maintained through deals.
For now, the impact on the food industry looks to be substantial but, at Big Roast, we won’t stop offering you an economical cost per head while wowing your party-goers with great meat, crackling and sides.