New Delhi,July 19, 2018: Arla Foods said even a softer version of Brexit could leave costs soaring because of the risk of shortages.
The Danish-based co-operative said customs-related delays risked raising the cost of everyday dairy goods such as butter, yoghurt and cheese.
Britain does make enough milk to keep up with demand, forcing it to lean on the EU areas that produce a surplus.
Most everyday dairy imports come from EU countries such as Ireland, Germany, France, Belgium and Denmark.
Ash Amirahmadi, Arla’s UK managing director, said: “The farmers that own the Arla dairy cooperative already balance keeping consumer prices down with maintaining quality and the best standards, including high animal welfare according to dailystar.co.uk.
“There’s no margin to play with here in the value chain.
“Any disruption means that if we don’t get the practicalities of Brexit right we will face a choice between shortages, extra costs that will inevitably have to be passed on to the consumer or undermining the world-class standards we have worked so hard to achieve.”
The news comes after it was reported the government was drawing up plans to stockpile processed food in case of a ‘no deal’ Brexit.
Theresa May has ordered ministers to step up contingency plans as the timer winds down on Article 50, according to the Sun.
The Brexit department is set to spend more than £17million preparing for a ‘no deal’ scenario under incoming secretary of state Dominic Raab.