Dear All,
Detailed below is the Weekly News and Covid 19 update for 23 November.
I hope you have a good week.
Gordon Polson
Chief Executive – Federation of Bakers Ltd
FOB Chief Executive’s Weekly News for 23rd November 2020
Barclays Economic Update: UK output producer price inflation stood at -1.4% during the 12-months to oct’20
According to data published by the office for national statistics (ONS), output producer price inflation (PPI) stood at -1.4% during the 12-months to oct’20. Meanwhile, the monthly output PPI remain unchanged in oct’20, compared to -0.1% in sep’20.
In terms of product groups, petroleum products provided the largest downward contribution to the output PPI, with an annual price inflation of -35.7% in oct’20. Additionally, chemical & pharmaceutical products and paper & printing products reported a decrease in annual PPI at 0.5% and 0.4% respectively during the same period.
Meanwhile, input PPI i.e. inflation for materials and fuels purchased by manufacturers, stood at -1.3% during the 12-months to oct’20. Crude oil provided the largest downward contribution to the input PPI, with an annual price inflation of -33.4% during the same period.
The monthly input PPI rate in oct’20 stood at 0.2%, compared to 0.3% in sep’20. Crude oil provided the largest downward contribution to the monthly input PPI at -0.9%$ in oct’20. Meanwhile, prices for imported food materials have increased by 3.5% during the same period.
DEFRA Statement: Products of Animal Origin: The phasing in of the Defra Import of Products, Animals, Food and Feed System (IPAFFS) which is the new national system for importing into Great Britain (GB).
As you are aware, the second phase of the transition to IPAFFS will introduce Products of Animal Origin via CVED-P and High Risk Food and Feed of Non Animal Origin via CHED-D from the 7 December.
We will be presenting webinars to your members on the 25 and 26 November about the switch to IPAFFS and will be holding an information session for trade associations for POAO and HRFNAO on 24 November to keep you updated. Please see attached copy of email they have received:
It is important your members know they must switch all notifications to GB from non-EU/third countries which are currently made in TRACES on a CHED-D & CHED-P must be made in IPAFFS from 7 December 2020.
The webinar will provide you with an overview of how to share information with your members including the go-live plans for using IPAFFS, give you updates on the system and support you with key information for the transition to IPAFFS.
To register for the webinar please click the link to register your attendance.
Guidance on health and identification marks
FSA guidance for businesses that use the health and identification marks for food products of animal origin (POAO) such as meat, egg products, fish, cheese and milk has been updated.
Links to Defra’s Exporter Journey GB to EU Webinars
Links to our recorded webinars on the GB to EU Exporter Journey are now available on YouTube. Please share with anyone who may find this information useful. The topics are:
- Exporting Live Animals
- Exporting Products of Animal Origin
- Exporting Equines
- Exporting Composite Goods
- Exporting Fish and Fishery Products for Human Consumption
Transition period: letters about actions to take from 1 January 2021
The Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, has written to the agri-food and biosecurity sector about actions to take from 1 January 2021 Transition period: letters about actions to take from 1 January 2021
The Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, has written to the agri-food and biosecurity sector about actions to take from 1 January 2021
Home Office podcast on the new immigration system
The Home Office has today launched a podcast for businesses which explains the new immigration system and how employers can prepare. The podcast is available to listen to via: Acast | Apple | Spotify
New film shows importance of ventilation to reduce spread of COVID-19
New short film released by the government shows how coronavirus lingers in enclosed spaces, and how to keep your home ventilated. (GPs note: Not sure if this is helpful for office space)
FDF Brexit Essentials Webinar: The end of the EU transition period is just weeks away. By this time we hope to have clarity on what food and drink businesses need to do to ensure they can continue to operate effectively.
Are you sure that you have everything in place? Join us on Thursday 10 December for this one-day event packed with three essential sessions to round-up everything we know so far, and assurance that you are taking the right steps. FDF has been at the fore-front of discussions with the UK Government on EU transition and our expert colleagues will be joined by international law firms and advisers to help you prepare.
https://www.fdf.org.uk/events/Brexit-Essentials-The-end-of-transition-Dec-2020/?tr=25oT14a
The three sessions will cover:
– International trade, borders and tariffs
– Immigration and workforce
– Regulation and devolved nations
Food supplies between N. Ireland & Great Britain
Baroness Ritchie of Downpatrick has questioned the Government on the progress being made in talks between the EU and UK on trade between Northern Ireland and Great Britain. She told Peers that supermarket chains and other business consortia in Northern Ireland are deeply concerned that goods supply lines will be cut off to them from 1 January 2021 and she urged the Government to ensure that flexibilities are built into food supply lines so that Northern Ireland businesses and consumers can continue to enjoy a wide range of choice and affordability with respect to all food products. In response the Cabinet Office Minister, Lord True, said that the UK Government recognises “the unique position of authorised traders, such as supermarkets, with stable supply chains and comprehensive oversight of warehousing and distribution, moving pre-packaged products for retail solely in Northern Ireland.” He assured Peers that the Government is “continuing to pursue specific solutions for this trade.” Lord Reid of Cardowan suggested that “the Government’s claims that the Prime Minister’s deal (the revised Northern Ireland Protocol) will produce unfettered trade are, quite frankly, delusional.” He suggested that “instead of planning to breach our international obligations the Government should look at constructive alternatives”. Lord True expressed regret that the Peers had amended the UK Internal Market Bill provisions which sought to address these issues. Lord Purvis of Tweed urged the Minister to provide clarity for business on “whether goods going to Northern Ireland will have to have EU labels, UK labels or both.” Lord True referred to on-going discussions in the EU-UK Joint Committee and said he would write to Lord Purvis about this. Lord Monks said it has long been known that “Brexit, plus a failure to negotiate a comprehensive free trade agreement, would lead either to new and more border arrangements in Ireland, and so to a likely breach of the Good Friday agreement, or, alternatively, to new barriers and obstacles down the Irish Sea, so threatening the integrity of the UK”. He asked the Minister to explain the Government’s “elusive third way”. In response Lord True again expressed regret that Peers had rejected the Government’s approach to tackling this issue at set out in the UK Internal Market Bill, while emphasising the Government’s support for the Belfast/Good Friday agreement.
Help available at the EU Exit Food Hub!
In the run up to the end of the transition period, along with the wealth of information available on the BFFF website, we would like to remind members of another valuable source of information available to them. The EU Exit Food Hub aims to provide a central source of information for agri-food businesses, drawn from official UK and EU guidance on what will happen when the “business as usual” transition period under the Withdrawal Agreement expires on 31 December 2020.
UK supply chain vulnerabilities post Brexit
Geraint Davies has asked the Government if it will make an assessment of the implications for its policies of the recommendation in a London School of Economics report, Vulnerabilities of Supply Chains Post-Brexit, which advocates full recognition by the EU and the UK at customs borders of their respective agreed food safety systems and veterinary certifications to minimise frictions in supply chains for UK food and dairy producers. Mr Davies also highlighted a prediction in the report of a 55% increase in the price of 99% of dairy product imports after 2020 in the event that no deal is agreed. In response the Defra Minister, Victoria Prentis, welcomed the report and agreed it is important that we are able to minimise friction in our supply chains. She said that the UK has “been clear any future agreement will be made in respect of the decision-making autonomy of the EU and with respect for British sovereignty.” She also noted that in recognition of the impact Covid-19 the Government has taken the pragmatic decision to introduce border controls in 3 stages up until 1 July 2021, which she suggested “will give industry extra time to make necessary arrangements.” On dairy products, Ms Prentis said that the Government has been clear that it seeks a free trade agreement with the EU based on friendly cooperation and maintaining tariff and quota free access, which should be beneficial to both sides.
Responding to a question from Dan Jarvis, Ms Prentis confirmed that products of animal origin (POAO) from the EU will not be subject to additional checks until April 2021. From April, documentary checks on these goods will be carried out remotely. From July, POAO will be subject to a minimum of 1% physical and identity checks at the border, and documentary checks will continue to be carried out remotely to preserve the flow of goods from the EU to Great Britain.
HMRC Guidance
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FDF Free Webinars:
| Webinar: From Environmental Management to sustainability 24 November 2020 How moving from environmental management to sustainability can support organisations in achieving their strategic business objectives. |
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| Webinar: Preventing and Defending Claims for Nuisance 25 November 2020 With many operators facing claims for nuisance, ITPEnergised and CMS are co-presenting a webinar to help companies understand and defend such claims, throwing light on a subject all too often kept behind closed doors and struggled with alone. |
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| Webinar: The Power Of Influencer Marketing For Brands 26 November 2020 In this webinar we will discuss how to identify and collaborate with influencers for maximum brand impact. |
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| Webinar: Extended Producer Responsibility: Opportunities for Circularity 3 December 2020 This webinar will outline the current timeline for EPR Reform, the Managed Competition Model Proposal and UK recycling targets for the Food and Drink industry. It is brought to you by the Valpak policy team. |
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| Webinar: “COVID-19, a review of potential civil and regulatory risk, now and in the future” 8 December 2020 The COVID-19 pandemic has already posed significant challenges for businesses and yet it is still far from clear what the long term repercussions will be in terms of risk legacy. |
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| Webinar: Food and Drink BREF update 19 January 2021 The updated Food and Drink sector BREF note BAT conclusions (BATc) were published on 4 December 2019. |
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| Webinar: SECR – Streamlined Energy and Carbon Reporting – find out if your company has to comply and what you need to do 14 January 2021 UK registered companies classed as a ‘large enterprise’ must now include a statement of annual energy use and associated carbon emissions within their Company Annual Report. |
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| Webinar: Getting started with scope 1 & 2 carbon emissions 20 January 2021 Reducing carbon emissions across your operations is an essential part of an organisations net zero strategy and understanding and tackling scope 1 and scope 2 emissions is key to this. |
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| Webinar: Making sense of scope 3 carbon emissions 10 February 2021 For many organisations, a large proportion of their total carbon emissions will fall within the scope 3 category (indirect emissions), making these a key area of focus to support the transition to net zero. |