The government is indefinitely postponing plans to roll out ‘not for EU’ labels on all meat and dairy products sold across the UK next month, amid warnings this would push up prices for food manufacturers.
The policy was first introduced by the Conservative government as part of a post-Brexit deal agreed with the EU last year, also known as the Windsor Framework.
The ‘not for EU’ labels were originally implemented on “high-risk” meat and dairy products exported from Great Britain to Northern Ireland in October 2023, as a way to prevent goods meant to stay in the UK’s internal market from being sent to the Republic of Ireland – where the EU’s strict biosecurity standards apply.
The UK and the EU agreed on this measure to avoid having a hard border on the island of Ireland, where customs and SPS checks on GB goods would have to take place.
However, Northern Ireland ministers feared the new labelling requirements would discourage GB manufacturers from exporting to NI, leaving businesses there at a commercial disadvantage and consumers with fewer options.
The government then proposed to roll out ‘not for EU’ labelling across the whole of the UK. This would have started with meat and dairy products this October, eventually expanding to an array of food and drink goods including fruit & veg, fish, pizzas and biscuits by 2025.
How Brexit’s ‘Not for EU’ labels will impact Great Britain-Northern Ireland trade
While the legislation to implement the changes across the country had yet to be brought in, the proposals were faced with fierce backlash from the industry, with several trade associations warning of the added costs to producers.
The Food & Drink Federation estimated the new packaging requirements could cost manufacturers up to £250m a year, which would subsequently push up prices for shoppers.
The FDF repeatedly argued there was no evidence GB exports to Northern Ireland had fallen substantially due to the ‘not for EU’ labels. The scheme was at the centre of a government consultation earlier this year, but the results were never published.
Labour ministers have now decided to indefinitely postpone the controversial measures and only use them as a “contingency mechanism” on specific products in case there is evidence of a drop-off in supply that is leading to reduced availability in NI, The Grocer understands.
One senior industry figure said the government would “consider introducing GB-wide ‘not for EU’ labels only on those products that have been de-ranged or de-listed from Northern Ireland, to level the playing field by removing any competitive advantage suppliers may get in avoiding sending products to NI”.
A Defra spokesperson said: “Ministers are carefully considering the evidence provided in the recent ‘not for EU’ labelling consultation.
“We are committed to taking all necessary steps to protect the UK internal market and are continuing to engage with businesses to ensure the smooth flow of goods to Northern Ireland.”
The decision will be welcomed by trade bodies, many of whom had written to new Defra secretary Steve Reed earlier this month, arguing that the lack of clarity on whether GB-wide requirements were to press ahead in just under a month was “extremely unsatisfactory” and had left food businesses in “complete limbo”.
FWD urges the government to scrap ‘Not for EU’ labelling
The letter, sent by the Provision Trade Federation and signed by the FDF, the NFU and Dairy UK, among others, urged the new government to can the plans or give industry more time to prepare.
The uncertainty had caused major upheaval among retailers and their suppliers, as some had already asked their producers to change their packaging accordingly to the new regulations, while others awaited a final government decision.
“We’re pleased that the new government has approached this issue with an open mind,” said FDF CEO Karen Betts. “There is undoubtedly a problem to be solved that is going to require a bit of flexibility.”
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