Food and farming businesses are being urged to prepare for regulatory changes expected under the SPS agreement
Small food and feed businesses are largely unaware of potentially significant regulatory changes expected under the planned UK-EU sanitary and phytosanitary (SPS) agreement, according to the Food Standards Agency.
The FSA said the “overwhelming perception” among local authorities was that small and medium-sized firms had little awareness of the forthcoming arrangements, despite possible implications for ingredients, animal feed, labelling, production methods and supply chains.
Most councils also told the regulator they had carried out little or no preparatory work themselves, citing uncertainty over the final agreement and pressures on resources.
The findings come as government guidance urges every agrifood business to begin preparing for changes expected under the agreement, which ministers intend to bring into effect in mid-2027, subject to ongoing negotiations.
The planned arrangements are far broader than changes at the border, potentially affecting businesses throughout farming and food supply chains whether or not they trade directly with the EU.
Areas covered include animal feed and feed additives, food ingredients, pesticides, food safety and hygiene, labelling, plant and animal health, organics and regulated products.
Food manufacturers may have to review products, ingredients, manufacturing processes, packaging and sourcing to ensure they comply with relevant EU requirements once the new arrangements take effect.
Farmers and growers could also be affected by future changes to areas including pesticides, maximum residue levels and animal feed, although Defra says they are not expected to make detailed changes at this stage while negotiations continue.
Concerns about business awareness extend beyond the FSA's work with councils.
Separate Food and Drink Federation research found that 41% of its members were either unaware of, or did not understand, how the SPS agreement would affect them.
The federation, which represents food and drink manufacturers, has broadly welcomed the prospect of reducing the checks and certification involved in EU trade, but has repeatedly called for businesses to be given sufficient notice of regulatory changes.
FDF chief executive Karen Betts said earlier this year: “Businesses need to know what to do by when, and how long will they have to comply.”
The regulatory transition also comes as around 390 applications remain in the joint FSA and Food Standards Scotland Market Authorisation Service.
Applications currently take more than two years on average to reach authorisation, while nearly half of those in the system concern products that have already been authorised in the EU.
The service deals with regulated products used throughout the food and agricultural supply chain, including food and feed additives, novel foods and food-contact materials.
That creates a particular issue for companies with products currently authorised in Great Britain but not under the corresponding EU regime.
Under the arrangements currently envisaged, businesses would need to comply with applicable EU authorisations once the SPS agreement takes effect, although the final position remains subject to negotiations and any agreed exceptions.
The government has warned food manufacturers to consider whether products, ingredients and production methods that are currently compliant in Great Britain would continue to meet the rules expected under the new system.
Industry representatives have broadly welcomed the potential benefits for trade, including fewer border checks and reduced certification requirements, but businesses have also sought greater clarity over the transition and the areas where current GB and EU regulations differ.
The FSA said businesses and trade organisations had delivered a strong message that sufficient preparation time would be needed between the final agreement and implementation.
It is also examining whether companies could be given earlier access to EU market authorisations before the wider SPS arrangements take effect.
Food and feed manufacturers have argued that doing so could give businesses more time to reformulate products, alter packaging and make supply-chain changes rather than facing a concentration of adjustments when the agreement begins.
However, legislative changes would be required before EU-authorised products without the necessary current GB approval could gain early access to the market.
The FSA board is due to discuss the SPS programme on Wednesday (16 September), including the issue of early access to EU market authorisations and how the hundreds of applications already in the authorisation system should be handled.
For farming, food and feed businesses, the findings highlight the scale of preparation that could be required over the coming months, particularly for smaller firms that may have had little previous reason to closely follow EU regulatory developments.