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Highlights
- Amid rising fears regarding the collapse of the supply of food products from Europe, the UK has delayed EU import checks for the fourth time.
- With the war situation and the cost-of-living crisis, the Boris Johnson government is carefully reviewing the current border plan.
Amid rising fears regarding the collapse of the supply of food products from Europe, UK PM Boris Johnson has indicated that the food imports from the EU would not have to go through the physical Brexit border checks. These border checks, which were about to be established in July this year, have previously been delayed three times already. The checks could potentially be pushed back by around nine months, and the new border operating model is anticipated to be declared by the end of the next week.
Since the beginning of 2021, all EU border countries have had active Sanitary and phytosanitary (SPS) checks, under the Brexit withdrawal agreement. The sudden change in the policies regarding checks has left the exporters of fish and other fresh food products in turmoil.
The shortfall of veterinary staff and customs agents has created troubles for exporters as it has hindered the process of certifying the products in line with the EU standards. However, checks on fresh food were not implemented for imports in the UK after Brexit.
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Amid the war situation and a cost-of-living crisis, the UK Government is carefully reviewing the current border plan, under which checks on meat were to be initiated from July, dairy from September, and all other food products from November.
Let’s look at 3 UK food stocks that may be impacted by the changes in border checks.
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Anglo-Eastern Plantations Plc (LON: AEP)
The shares of the UK-based palm oil and rubber producer, Anglo-Eastern Plantations plc, were down by 1.11% at 11:44 AM (GMT+1) on 22 April 2022, at GBX 892.00. The market cap of the company stands at £357.52 million as of 22 April 2022. The company has provided a return of 39.53% to its shareholders over the last one year as of 22 April 2022, while its year-to-date return stands at 23.06%.
Tesco plc (LON: TSCO)
The shares of the leading UK-based retailer, Tesco plc, Tesco plc, were up by 0.60% at 11:48 AM (GMT+1) on 22 April 2022, at GBX 266.70. The market cap of the FTSE 100 company stands at £20,214.10 million as of 22 April 2022. The company has provided a return of 17.39% to its shareholders over the last one year as of 22 April 2022, however, its year-to-date return is negative, at -8.00%.
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Premier Foods plc (LON: PFD)
The shares of the UK-based food manufacturer, Premier Foods plc, were up by 1.56% at 11:52 AM (GMT+1) on 22 April 2022, at GBX 117.20. The market cap of the FTSE 250 company stands at £995.65 million as of 22 April 2022. The company has provided a return of 20.82% to its shareholders over the last one year as of 22 April 2022, while its year-to-date return stands at 4.83%.
