Brexit and Halloween are set to arrive together in the UK on October 31st and seems poised to deliver sharp impacts on fresh food supplies.
Food supply chains are preparing by reserving warehouse spaces, setting up alternative distributors and planning to deal with lost orders in congested ports. Others have taken more direct actions which include; Rolls Royce investing £100 in inventory systems to ensure they can maintain operations, Pharmaceutical suppliers booking air cargo space as a back-up and food-service suppliers locking in plans to increase food inventories in the days leading up to the date of Brexit.
With 60% of the food Britain consumes is imported at this time of the year, some challenges are highly anticipated as the terms of the exit remains unclear. While car parts and pharmaceuticals can manage this challenge by building more inventory but the only way UK is going to find more fresh food is to pay more for what has been produced to go elsewhere.
Whatever shape the Brexit transition takes, it appears set to confirm that when unplanned demand and logistical disruptions impact the fresh food market, it will respond with a rise in price.