No-deal Brexit to hit UK packaging sector as well
A no-deal Brexit is to hit not only food producers in UK but also the packaging industry in the country, particularly plastics, which are included in Top 10 British imports and exports.
According to the British Plastics Federation, 69% of all British trade in plastics is completed within the EU. It estimates that failure to secure a trade deal with the EU would see a dramatic £540 million ($694 million) increase to the cost of imports and a £340 million ($437 million) increase to the cost of exports, informs Food Ingredients First magazine.
The chain of supply for the F&B sector is most likely to be affected in case of no-deal Brexit, along with the supply for the packaging sector.
This is across the board and could affect all imported plastics and polymers, cartons and paperboard, metal packaging and more. Products for FMCG, particularly food markets including chilled and fresh products are most at risk", explained Neil Farmer, UK packaging expert, for Packaging Insights magazine.
The ongoing uncertainty around Brexit has already determined some companies to delay their plans for expansion in the British market and, besides that, skills and labour availability in the UK packaging industry are questioned as 15% of the workforce in the sector is non-nationals.
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