Graham’s Family Dairy Raises Alarm Over Post-Brexit Labelling Costs
Source: The DairyNews
Robert Graham, managing director of Graham’s Family Dairy, has sounded the alarm over the UK Government's post-Brexit labelling scheme, warning that it could incur substantial costs for Scottish businesses.
Set to be implemented in October, the "Not for EU" labelling scheme aims to streamline goods transit to Northern Ireland by mandating the inclusion of "Not for EU" on products not destined for the continent. However, Graham argues that this move will impose significant financial burdens on companies across the country.
For Graham’s Family Dairy alone, the transition is estimated to cost £300,000, excluding expenses related to labor, complexity, and operational adjustments. With over 300 product lines requiring packaging changes, the total financial impact could run into millions of units per week.
Dairy UK reports that businesses could face up to £500,000 in expenses solely for label alterations, with total costs reaching up to £2 million when considering other associated expenses.
Graham emphasized the disproportionate burden on food and drink firms, citing the need for distinct packaging between UK and export lines. He criticized the perceived overreach of the new requirements, arguing that they add unnecessary complexity without tangible benefits to trade with Northern Ireland.
Expressing concerns over consumer confusion and increased operational costs, Graham called on the UK Government to reassess the legislation's implications. A recent poll by Best for Britain revealed that nearly one in five consumers are less inclined to purchase products labeled "Not for EU," indicating potential repercussions for businesses.
In his efforts to address the issue, Graham has engaged with the Office of the Secretary of State for Scotland, advocating for a reconsideration of the proposed labelling requirements. As the deadline approaches, businesses like Graham’s Family Dairy remain vigilant in seeking practical solutions to navigate the evolving post-Brexit landscape.
For Graham’s Family Dairy alone, the transition is estimated to cost £300,000, excluding expenses related to labor, complexity, and operational adjustments. With over 300 product lines requiring packaging changes, the total financial impact could run into millions of units per week.
Dairy UK reports that businesses could face up to £500,000 in expenses solely for label alterations, with total costs reaching up to £2 million when considering other associated expenses.
Graham emphasized the disproportionate burden on food and drink firms, citing the need for distinct packaging between UK and export lines. He criticized the perceived overreach of the new requirements, arguing that they add unnecessary complexity without tangible benefits to trade with Northern Ireland.
Expressing concerns over consumer confusion and increased operational costs, Graham called on the UK Government to reassess the legislation's implications. A recent poll by Best for Britain revealed that nearly one in five consumers are less inclined to purchase products labeled "Not for EU," indicating potential repercussions for businesses.
In his efforts to address the issue, Graham has engaged with the Office of the Secretary of State for Scotland, advocating for a reconsideration of the proposed labelling requirements. As the deadline approaches, businesses like Graham’s Family Dairy remain vigilant in seeking practical solutions to navigate the evolving post-Brexit landscape.
