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Business As Usual ... Even In The Face Of Brexit
On 23 June 2016, the British took to the polls to choose between ‘shall we stay?’ or ‘shall we go?’ — but it was two years ago, 29 March 2017, when the British government officially informed
the European Union of its intention to withdraw from the EU.
At the time of writing this article, the British parliament is prepar- ing to upset the apple cart by sidelining Theresa May. Early morning talks in the Dutch agricultural environment are more about Brexit than breakfast. Still, after two years of negotiations and talks, just
about everything remains unclear! So what DO we know?
Well, for many decades the relationship in terms of fresh produce between The Netherlands and the United Kingdom has been based on international phytosanitary and economic laws and regulations. It has all become standard operating procedure for us, and exporting to the UK has simply meant another day at the office. The looming Brexit has become a big unknown that confronts all of us on both
sides of the North Sea.
During the past months, many UK-based companies have either
transferred their operations to The Netherlands or acquired Dutch companies to sidestep the expected disruptions that will occur as a result of a Brexit in any form. The main reason for companies to do this is clear: avoid a negative impact on operations. That being said, much is still unclear.
The Dutch fresh produce umbrella organization ‘GroentenFruit’ Huis (GFH) maintains intensive contacts with governments, inspec- tion bodies, logistics service providers, growers, trading companies and various interest groups. The organization also has initiated a Brexit working group with its members, working together on practical solutions. The aim is a good flow of fruit and vegetables shipments during the Brexit rollout.
One of our trade specialists recently said that right now South African apples, Dutch tomatoes and Belgian strawberries all move through the UK customs system equally fast if loaded in one truck. But what happens if after Brexit, the customs requirements for these products differ significantly? Will the apples hold up the tomatoes? Will the pineapples block the apples?
In this regard, the ‘Green Lane’ concept, which has been devel- oped, must guarantee a reliable and fast route for the movement of fruit and vegetables between The Netherlands and the United Kingdom. This route is intended for the EU-worthy (but in the UK non-licensed) products that are exported from the Netherlands. And vice-versa. Green Lane products will form an already approved prod- uct stream. The key issue will be not to mix ‘Green Lane’ products with other products (products with a higher chance of an inspection on the UK side). By following this system, ‘Green Lane’ products will be prevented from being unduly delayed.
Important components of this solution could be:
• Ensure EU-worthy products are offered through timely organized inspections if necessary.
BY NIC JOOSTE
• Formal participation in ‘Green Lane’ chain conditions.
• Separate EU-worthy products from products which are in transit from 3rd country products.
• Use the formally approved system of clearly indication all ‘Green Lane’ shipments.
Our global network of growers is currently being advised on how to fine-tune their processes with their respective associations so that as a grower/importer/exporter team we are clear on who organizes or facilitates which parts of the process. If additional inspections are required at the farm level, what process is logistically useful? Where can a shipment best be inspected, is there sufficient space, does the inspection location meet the requirements/wishes of the Dutch agricultural inspection authorities? May an exporter still travel to the UK with its own transport?
If Brexit takes place, the United Kingdom becomes a third country in the eyes of the European Union. This means that quality inspec- tions will have to take place as is now also the case for exports to other non-EU countries (requirement from the EU itself). This has extensive consequences for the planning of inspections, as more space is needed. There also will be extra turnaround times in the pro- cess, and there will be possible rejections with necessary follow-up operations, etc. In addition to quality inspections, phytosanitary and food safety checks will play a major role in the disruptions.
Another worrying issue is whether different lots may be combined in one vehicle or container, as it could definitely have a great in- fluence on turnaround-time risks. It will be crucial to prevent risk products (with respect to phytosanitary, health, food safety) from delaying products with a lower risk. If parties are loaded together with lots from other shippers, the consequences can be even more disadvantageous than one anticipates.
Most logistics companies and exporters expect there will be de- lays at the ferry and container terminals. Exporters should therefore have a solid system of intelligence in place, making sure they stay informed of any delays, and checking in advance which alternative routes can be chosen. The Dutch Portbase (Port Community System, also known as PCS) is an excellent digital connection to all Dutch ports. PCS is available for all port sectors and allows everyone in the logistics chain to exchange information easily and efficiently.
Much more can be written on the disruptions that Brexit in any form will cause. For me, it is clear that, as always, the Dutch fresh produce industry will do what it has done so many times in history when faced with such a situation. And that is to tackle the challenge head on, find a creative solution, and to continue doing ‘business as usual’. It is simply part of our DNA, and I see Brexit as just another adventure in my career.
As the Perishable Pundit would say: there is a never a dull mo- ment in fresh produce. I love it. pb
Nic Jooste is the director of marketing and CSR at Cool Fresh International, a Rotterdam-based global marketing organization for fresh produce.
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