Fresh Produce Consortium Introducing the UK market: opportunities to trade Presented by Nigel Jenney – Chief Executive

The Fresh Produce Consortium UK trade association for the fresh produce industry Recognised as the voice of the UK industry Provides advice on regulatory and technical issues Liaison and lobbying with wide range of stakeholders Business development

UK market volume – fruit & veg Thousand tonnes Defra * 2017 provisional data

UK Imports – fruit and vegetables Defra *2017 provisional data Thousand tonnes

UK self-sufficiency UK produces 30 per cent of fruit and vegetables on the UK market Home production of vegetables = 57 per cent of total supply Home production of fruit = 16 per cent of total supply UK growers dependent on imports of live plant propagation materials: 95% of British soft fruits Defra

International supply UK imports 3.2 million tonnes from other EU Member States UK needs to source products all year round 2.7 million tonnes imported from over 90 third countries UK benefits from trade agreements between EU and others Eurostat 2018

Key trading partners within EU Thousand tonnes Percentage of UK imports from EU Spain 1,474 46 Netherlands 944 29 France 200 6 Italy 135 4 Poland 129 Belgium 117 3 Ireland 56 1 Portugal 54 Greece 42 Germany 22 0.6 Total UK imports from EU 3,200   Eurostat 2018

Key trading partners outside EU Thousand tonnes Percentage of UK imports from non-EU countries South Africa 391 14 Costa Rica 359 13 Colombia 331 12 Brazil 149 5 Morocco 146 Dominican Republic 145 Egypt 134 4 Ecuador 130 Peru 129 Chile 127 Total UK imports from non-EU 2,758   Eurostat 2018

UK floral supply UK imports of cut flowers valued at £748 million in 2017 74% of flower imports come via the Netherlands Kenya accounts for 6% of imports

UK economy and food prices 10% of household income is spent on food Economic uncertainty and currency fluctuations increasing costs of inputs Consumers keen to buy British but price of food remains main driver Without Free Trade Agreements Brexit is likely to increase UK food prices (fruit x 3%; vegetables x 4%) ONS/UK Trade Policy Observatory

Wholesale - opportunities beyond multiple retail Wholesale and food services = 35% of market share Fragmented & highly competitive sector Resilient, buoyant & vibrant – despite anecdotal evidence of decline Maintains market size and extensive presence

Brexit - Key challenges for our industry Efficient and cost-effective regulation and inspection Beneficial trade agreements with EU and 3rd countries Secure but frictionless UK borders for customs clearance Access global labour market & support current workforce

Beneficial trade agreements – no deal Some continuity agreements are already signed to ensure no barriers to trade when UK leaves the EU: Andean countries CARIFORUM countries Chile Eastern & Southern Africa Faroe Islands Iceland & Norway Israel Liechtenstein Pacific States Palestinian Authority Switzerland Mutual recognition agreements with Australia, New Zealand and USA

UK Import Tariff – no deal UK Government has published temporary rates of customs duty in event of a no deal. If goods are not listed they will have a zero duty rate: exceptions are bananas and beans. Tariff would apply for 12 months if UK leaves the EU without a deal. During this time a consultation will take place on a permanent approach.

Current UK position EU regulations are transposed into UK legislation to provide continuity in regulation UK-EU Withdrawal Agreement needs majority in House of Commons to be ratified by UK Government Next deadline is 31 October 2019 – potential for UK to leave EU without a deal remains strong FPC continues to work with UK Government and partners to represent members’ interests

EU action on plant health exceedances Greater EU scrutiny and action on persistently high levels of exceedances Significant changes in plant health import requirements from 1 September FPC works with UK representatives of exporting countries

Food safety and integrity Additional import controls under EC Regulation 669/2009 Traceability and Good Agricultural Practice are key requirements for UK customers BRC Global Food Standard Issue 8 and Fresh Produce Guideline

Sustainability and Ethical Trading Tackling labour abuse and exploitation Reducing packaging and packaging waste Re-focusing on carbon footprint and food miles Demand for efficient water use

Keep in contact with FPC www.fpc.freshtalkdaily.co.uk www.freshproduce.org.uk Nigel Jenney nigel@freshproduce.org.uk Tel: 01733 237117