Food and farming businesses told to get ready for EU trade reset

Food and farming businesses are being urged to prepare for a new UK-EU trade deal designed to reduce trade barriers and support exports of British produce to Europe.

The push comes after a sharp decline in trade with the bloc. The government says UK exports of food and agricultural products to the EU have fallen by 22% since 2018, equivalent to almost £4 billion in real terms.

Trade between the UK and EU has faced additional paperwork, certification requirements and border checks since Britain left the bloc.

Ministers say the proposed Sanitary and Phytosanitary (SPS) agreement could make trade with the UK’s largest trading partner easier, faster and cheaper.

Defra Secretary Emma Reynolds outlined the potential benefits of the agreement as negotiations continue, with the government aiming for the changes to come into force by mid-2027.

Officials say the deal could remove much of the paperwork, checks and delays currently affecting trade in agri-food goods between the UK and EU.

Reynolds said the government is seeking to rebuild closer trading ties with the bloc to support businesses across the country.

“We are resetting our relationship with the EU, our closest and largest trading partner, to make trade easier and cheaper, and deliver tangible benefits for British businesses,” she said.

She pointed to the impact current trading arrangements have had on exporters, from cheesemakers to shellfish traders.

“We are talking about real businesses, real employers,” she said, describing firms that have seen export trade cut dramatically or struggled with delays caused by paperwork.

“By reducing delays and unnecessary paperwork, this deal will help keep shelves stocked, protect jobs and put downward pressure on food price inflation for families across the country.”

Business and Trade Secretary Peter Kyle said the agreement could help British food and drink reach European markets more easily.

“More great British produce will be on European tables thanks to this agreement which will reduce barriers for exporters and create new opportunities for farmers and businesses across all parts of the UK,” he said.

The government has launched a six-week Call for Information to gather feedback from businesses and ensure support matches their needs ahead of the changes.

Officials have also published more detail on the scope of the agreement to help companies understand what the deal could mean for them.

Around 500,000 businesses could be affected by the changes, including companies that currently operate only within Great Britain but produce food, plants or animal products.

Businesses involved in the production or processing of food, animals or plants will need to align with certain EU rules under the agreement.

The government says this alignment would help remove many of the checks currently required at the border. However, some businesses may need time to adjust their systems or certification processes to meet the new arrangements.

The agreement could remove a range of costs currently faced by exporters. These include export health certificates costing up to £200 for agri-food goods, phytosanitary certificates costing around £25 alongside inspection fees of at least £127.60, and organic certificates of inspection – required for products such as organic lamb and cheese – costing around £35.

Other charges can also add up quickly. Identity check fees on meat and dairy exports add around £31 per load on average, while sampling can add approximately £1,200 to a cheese load, £1,400 to a salmon shipment, £440 to a load of apples, and £1,200 to a beef load.

Industry figures have welcomed progress towards a new agreement.

Bas Padberg, UK managing director at Arla Foods, said reducing friction in UK-EU trade would benefit farmers and consumers alike.

“The progress being made on reducing friction in the UK-EU trading relationship will be good news for Arla and our farmer owners, as well as for consumers, for food security, and for growing exports into Europe,” he said.

While negotiations continue, the government is encouraging businesses to begin preparing by engaging with trade bodies, reviewing supply chains and signing up for official updates from Defra.

Companies are also being urged to respond to the Call for Information to help shape guidance and support ahead of the changes.

Ministers say further guidance will be published as negotiations progress so businesses across the food and farming sector are ready when the agreement comes into force in 2027.