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Two food manufacturers and a major international distributor say the current uncertainty regarding the implementation of the Northern Ireland Protocol is likely to cause supply cuts in Northern Ireland, ITV News has learned.
Tate & Lyle Sugars have told their customers that, as is, the company will have a difficult time getting its products there in the New Year.
Joel Hills on the implications of the current uncertainty surrounding supply cuts in Northern Ireland
The company, which supplies major supermarkets in Northern Ireland, including Tesco, Asda, Sainsbury’s and Marks and Spencer, has advised retailers to develop contingency plans to source sugar and syrups from elsewhere.
Tate & Lyle Sugars publicly endorsed the Brexit campaign on the eve of the EU referendum on June 23, 2016.
The Northern Ireland protocol is part of the withdrawal agreement, brokered by the Boris Johnson government, which saw the UK leave the EU on January 31 this year.
Under the protocol, Northern Ireland will remain in the UK, but will remain part of the single market and apply EU customs rules when the transition period expires at the end of this year.
The protocol avoids the need for a firm border on the island of Ireland, but creates a theoretical customs border in the Irish Sea, between Northern Ireland and the British mainland.
The government has promised companies “unrestricted access” to goods that flow from west to east, but not in the other direction.
With seven weeks to the end of the transition period, there is still a lack of clarity on how customs procedures and labeling will work and whether goods moving from Britain to Northern Ireland will be subject to tariffs and quotas.
In a conference call this morning, hosted by the Department for the Environment, Food and Rural Affairs (Defra), Associated British Foods (ABF) and Culina, a logistics company, they also expressed alarm at the current ambiguity about future trade deals. .
The so-called “Food Resilience Industry Forum” was attended by retailers, manufacturers and distributors and was chaired by Chris Tyas, a former Nestlé executive, who joined Defra as Director of Food Supply after panic buying in the US. supermarkets during the first closing in March.
According to three participants, Ian Mace, Head of Government and Policy at Associated British Foods, said the company could foresee difficulties in getting some of its fresh produce and those of its suppliers to Northern Ireland.
He said there was an urgent need for clarity on the new trade agreements and that ABF’s bread business could be affected.
Bread has a short shelf life.
It is baked, packaged, shipped and sold in no time.
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ABF has a factory in Belfast that produces Kingsmill for the Northern Ireland market, but supplies are supplemented by deliveries from Scotland.
On the same call, Steve Winwood, COO of Culina Logistics Ltd, said that some British customers are deciding not to move food to Northern Ireland until the business situation clears up.
Culina Group specializes in delivering fresh, fresh, baked goods and room temperature.
Its website indicates that it has 2,400 vehicles and 75 depots in the UK and Ireland.
Morgan Mclernon, a Northern Ireland company that Culina acquired in 2017, delivers on behalf of major retailers, including Asda, Lidl, Sainsbury’s, M&S, Morrisons, Iceland, Tesco, Waitrose and Amazon Fresh.
A recent survey by the Food and Drink Federation found that more than one in five food and drink manufacturers planned to suspend deliveries from Britain to Northern Ireland when the transition period ends, until the new customs requirement is revealed. .
In a statement, Tate & Lyle Sugars said: “As a responsible supplier, we have been working with our NI customers on solutions that will allow us to continue supplying NI buyers after January 1.
“To support that, we need the EU and the UK to agree common sense rules that prioritize the IN consumer by recognizing that there is little risk of allowing existing trade to continue.
“We know that officials on both sides are working hard to negotiate exactly this to ensure security of supply.”
We need the EU and the UK to agree common sense rules that prioritize the Northern Irish consumer.
Associated British Food and Culina declined to comment.
A UK government spokesperson said: “The UK and the EU have committed to an intensified process of engagement to resolve all outstanding issues with the implementation of the Northern Ireland Protocol, which includes ensuring the flexibilities we need for the trade from GB to NI.
“This is particularly important for supermarkets, where we have been clear that specific solutions are required.
“We will continue to work closely with the Northern Ireland Executive as discussions continue with the EU through the Joint Committee process.”
