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Home » Spiralling Trade Costs Pose Dairy Dilemma After Brexit

Spiralling Trade Costs Pose Dairy Dilemma After Brexit

The U.K. dairy industry faces a “sharp rise in prices” and “shortages of products” when Britain leaves the EU, according to milk producer Arla.

Spiralling Trade Costs Pose Dairy Dilemma After Brexit
July 18, 2018
Supply Management

Even if the government strikes a trade deal with the EU, impacts on the supply chain, such as non-tariff trade barriers and labour shortages, could lead to spiralling costs for dairy companies, a report by the London School of Economics (LSE) found.

The report, commissioned by Arla, said longer waiting times for customs inspections at the border would increase trading costs because of longer hours for lorry drivers.

Every seven minutes of port check times would add 10 hours to transportation times, it found, equating to at least £111 ($144.81) extra per container. However, other factors like fuel and lorry maintenance costs, loss of perishable good life and higher wages for lorry drivers mean the figure is “at the lower end of the likely range.”

The report warned of extra delays because the U.K. Customs Declarations Service would have to deal with 250m declarations per year after Brexit, 100m more than the 150m it was designed to handle, which could further compound the £111 figure.

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KEYWORDS Europe Food and Beverage Freight Forwarding/Customs Brokerage Global Gateways Global Logistics Global Supply Chain Management Global Trade & Economics HR & Labor Management Logistics LTL/Truckload Services Regulation & Compliance SC Security & Risk Mgmt Transportation & Distribution
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