Key points
UK food exporters are set to benefit from a significant new trade deal with the European Union.
Small and medium-sized food and drink exporters throughout the UK are gearing up for a major boost following the announcement of this new trade package with the EU.
This agreement features a range of measures aimed at cutting costs and streamlining export processes for essential agricultural products like dairy, fish, eggs, and red meat. This will enable British businesses to concentrate on promoting their world-famous products abroad.
As part of the Government’s Plan for Change, this initiative seeks to enhance access to the UK’s largest trading market, stimulate export growth, create new jobs, and bolster supply chain resilience—all of which will help alleviate price pressures.
In 2024, the UK food and drink sector employed 3.8 million people, making it one of the most crucial economic sectors in the country.
Neal’s Yard Dairy among key beneficiaries
One of the small businesses likely to gain the most is Neal’s Yard Dairy, an artisanal cheese maturing, retailing, and wholesaling company based in London. They run a successful export business, providing award-winning cheeses to customers and retailers across Europe and beyond.
Gareth Thomas MP, Minister for Small Business and Exports, recently visited the company’s Bermondsey location to meet with Director David Lockwood and his team, discussing how the upcoming Sanitary and Phytosanitary (SPS) Agreement will support their international operations.
“The UK’s food and drink sector has immense exporting potential, and Neal’s Yard Dairy is a prime example of how, with the right government backing, small businesses can expand into new and existing markets,” Mr. Thomas stated.
“Through our Trade Strategy, three landmark trade deals, and our Small Business Strategy, this Government’s Plan for Change is dismantling barriers for exporters, boosting trade, creating jobs, and fostering economic growth,” he added.
Streamlined checks to cut costs and delays
For artisan producers like Neal’s Yard, who specialize in small batches of perishable goods, this agreement is set to be a game changer. By eliminating routine SPS border checks, fresh produce can hit supermarket shelves faster, with less red tape and lower costs.
Right now, British goods are subjected to 100% documentary checks and up to 30% physical inspections. Thankfully, these requirements will be scrapped under the new deal.
Once everything is finalized, this agreement is projected to boost the UK economy by as much as £5.1 billion each year and ramp up exports of key agricultural products to the EU by up to 16%.
Industry welcomes the move
Rod Addy, Director General of the Provision Trade Federation—which represents sectors that account for about 20% of UK household food spending (£24 billion annually) and supports 130,000 jobs across the country—praised the potential benefits of the deal.
“Once the SPS agreement is wrapped up, the rewards for UK food and drink businesses—and the broader economy—are enormous: millions saved by cutting out Export Health Certificates and border checks that currently bog down trade,” Mr. Addy stated.
“It’s crucial that the UK secures this deal as soon as possible. We can’t afford to face another Christmas under the current system, as companies are losing money every single day until a resolution is found.”
David Lockwood, Director at Neal’s Yard Dairy, shared similar concerns, pointing out the hurdles they've faced since Brexit.
“The extra requirements for exporting to the EU have brought about significant costs and delays for our business. The need for veterinary-signed health certificates has doubled our delivery times and added unnecessary expenses,” he noted.
“We’re looking forward to the removal of these non-tariff barriers so we can concentrate on what we do best—selecting, maturing, and selling outstanding British cheese both at home and abroad.”
