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FYI: Freshfel’s view on Brexit’s consequences for fruit and veg trade

4 August 2016

It said that short-term consequences may be related to disrupted trading relations and insecurities based on the drop of the Pound. It believes that in the long-run, the Brexit would lead to an elimination of existing framework agreements to conduct trade within the European Union as well as with third countries. This could force businesses to adapt to the new market situation and lead to insecurities over the upcoming months.

Freshfel said that it would closely follow the political and economic developments of the move, and voice the specific requirements of the fresh produce business. Procedures could be impacted by political and legal complexity. Nevertheless, the association would like to see a fast clarification of the political situation, to give business operators possibility to adapt to new market conditions.

Today, the British market is provided with fresh produce originating from close to 120 countries. A snapshot on the trade between the UK and the EU-27 shows the tight relationship, but also the heavy reliance on external imports of fresh products of the UK:

  • In 2015, the UK received more than 5.6 million T of fresh fruit and vegetables from either the EU or other origins from around the world. The value of this import business was worth €6.8 billion. Out of this volume 52% (or 2.9 million T) are more specifically originating in the EU.
  • The main fresh produce suppliers are: Spain (1.4 million T), The Netherlands (700.000 T – including some trans-shipments), South Africa (350.000 T), Costa Rica and Colombia (300.000 T each), but also Dominican Republic, France, Germany, Ireland (ca 200.000 T each).
  • Products include among others bananas (1.1 million T), apples (450.000 T), soft citrus (300.000 T), oranges (280.000 T), table grapes (280.000 T).
  • The UK also exports / re-exports up to 240.000 T to EU-27 and third countries, a business trade worth €240 million. Ireland is the main destination taking up close to 50% of this business.