Brexit reality: British companies, in fact, stockpiling raw materials

Earlier this year Brexiters were giving out, declaring it was "scaremongering" when it was claimed British firms would have to stockpile raw materials in advance of Britain leaving the EU.

Well, BBC News tonight at 10pm was reporting that a major food company - the one that makes Mr Kipling, Bisto and the like - has revealed it is doing precisely this stockpiling due to its fears of a no-deal Brexit. In reality, it seems many, many companies
have made plans in this regard.


Bisto owner plans Brexit stockpile

Premier Foods has said it intends to stockpile raw materials in the run-up to Brexit as fears grow over gridlock at UK ports.

The firm, which owns Bisto, Oxo and Mr Kipling, said it was taking steps "in the absence of certainty over the arrangements for the UK's departure from the EU".

Premier Foods said it expected to spend up to £10m on the preparations.

It also hopes to sell its Ambrosia custard and creamed rice business.

It said it was having "discussions with third parties regarding the potential disposal" of the brand, as well as the factory in Devon where the products are made.

Premier Foods said it had seen lower sales of custard products because of the hot summer and had reduced its promotional investment in the brand.

The company's shares were up more than 2% in Tuesday morning trading.

Delays risk
"The group shortly intends to start a process of building stocks of raw materials to protect the company against the risk of delays at ports," Premier Foods said.

The firm said this had the potential to cause "an adverse movement of up to £10m in working capital", but it hoped to compensate for that outlay in the next financial year.

My Brexit box: The people stockpiling food
Brexit stockpiling: No room at warehouse
Premier Foods said that "like all businesses", it had spent several months planning on "a range of scenarios subject to the nature of any Brexit deal that is reached".

"As part of this, Premier Foods have a cross-functional team in place which continues to keep the possible implications to our business under review," it added.

"This is purely a precautionary measure as Premier Foods, like all companies, ensures it's prepared for any Brexit scenario."

Brexit stockpiling: No room at food warehouse in Cardiff

How can a formerly stable European liberal democracy inflict such a stunning, entirely self-inflicted own-goal on itself in the space of a couple of years? And why are people in England who depend on economic stability and some sense of economic certainty not mobilising now that it's clear what Brexit entails?

Silentcorner

For once our complete lack of confidence in ourselves actually prevents us from making the worst democratic decision any nation has ever made....

The Brits on the other hand!!!!

Harry Palmr

The car and medical supply sectors are already doing likewise - as was pointed out months ago there is not enough warehouse space in the UK to actually create stockpiles for all the things you might want to stockpile, esp fresh foods and other short term consumables. The world of JiT delivery has the UK hanging on by a thread if the **** hits the fan I'd not be shocked if Uk companies leased warehousing in Ireland, France, and the Benelux countries!

Fann Linn

Civil war in the offing the way that place is slowly falling apart. I look forward to the DUP meltdown with bated breath tomorrow.

TallGlass

Brexit is going to be the biggest cluster **** in modern history. I just hope the shockwaves to hit us aren't as bad as is expected. It's unbelievable they are still full steam ahead on it. Nothing sorted and going to crash out. It ain't gonna be pretty.

Buford T. Justice XIX

Harry Palmr wrote: »

The car and medical supply sectors are already doing likewise - as was pointed out months ago there is not enough warehouse space in the UK to actually create stockpiles for all the things you might want to stockpile, esp fresh foods and other short term consumables. The world of JiT delivery has the UK hanging on by a thread if the **** hits the fan I'd not be shocked if Uk companies leased warehousing in Ireland, France, and the Benelux countries!

I doubt stockpiling stuff in EU countries is going to ease gridlock at the ports though.


Where the crunch will come is in food supplies. Britain is only 61% self sufficient in foods and little in storage, as mentioned above. It will only take 2 weeks after a hard Brexit for the manure to hit the fan. Only for Ireland being so badly exposed to the disaster that is Brexit, I'd be munching popcorn while their dreams become exposed to reality.

Ray Palmer

Read the Daily Mail comments and you will see they don't think there will be any bother. Many are convinced that the UK will do brilliantly.

For all the arguments against the EU the fundamental thing it does is harmonise regulations. UK standards system was fantastic but then they replaced it with the EU. So now they either set the whole thing up again and follow the EU anyway. They will have no choice but now they have no voice in the standards. That alone is going to cause them so much hassle and they are not ready now. The negotiations include this and with out a deal this will crucify them if they can even get goods out of the country. Other non-EU country won't take the goods without some agreed certification system which the UK has to agree with these countries all at the same time.

The public who voted to leave had no idea of how intertwined the UK were with the EU and believed things like EU insisting bananas were straight.

listermint

Ray Palmer wrote: »

Read the Daily Mail comments and you will see they don't think there will be any bother. Many are convinced that the UK will do brilliantly.

For all the arguments against the EU the fundamental thing it does is harmonise regulations. UK standards system was fantastic but then they replaced it with the EU. So now they either set the whole thing up again and follow the EU anyway. They will have no choice but now they have no voice in the standards. That alone is going to cause them so much hassle and they are not ready now. The negotiations include this and with out a deal this will crucify them if they can even get goods out of the country. Other non-EU country won't take the goods without some agreed certification system which the UK has to agree with these countries all at the same time.

The public who voted to leave had no idea of how intertwined the UK were with the EU and believed things like EU insisting bananas were straight.

For every 2 comments, there is 8 dodgy ones from dubious sources. The online discourse is shady to say the least and is intended to spread disinformation and sway feelings of those that are reading it.

There is a cyber war going on and it has been for a number of year. Its everyday, its active and its 24/7 .


Much of those comments simply arent real people. although the profiles would lead you to think they are.

selwyn froggitt

Ray Palmer wrote: »

Read the Daily Mail comments and you will see they don't think there will be any bother. Many are convinced that the UK will do brilliantly.

Ah the good old DM!

Most of their readers are going to stockpile hard cheese, sour grapes, red herrings, anything pear shaped and lots of cake so they can have and eat it too.
Oh, and cherries, just to pick at you understand.

Agricola

Unbelievably, I think the British have taken our "Ah shure, t'will be grand" attitude and made it their own!

wexie

Buford T. Justice V wrote: »

It will only take 2 weeks after a hard Brexit for the manure to hit the fan. Only for Ireland being so badly exposed to the disaster that is Brexit, I'd be munching popcorn while their dreams become exposed to reality.

It's shocking indeed. I, probably like many people, didn't think it would come to a no-deal Brexit simply because I couldn't really fathom that level of stupidity.

I've read a good few articles now on the potential far reaching consequences of no deal and it's really quite worrying how quickly things could go downhill.

There's a part of me wondering if the EU would allow it to happen though. I appreciate they might have to but it nearly seems like they (the UK) might need to be protected from themselves.