Food industry trade organizations are contemplating legal action against the government regarding post-Brexit regulations mandating all meat and dairy products sold in the UK to bear a label stating “not for EU.”
Producers argue that such labeling requirements could escalate their annual costs by £250 million, exacerbating inflationary pressures. If unable to reach a resolution with the government, they are considering legal recourse as an option.
One trade body disclosed ongoing consultations with legal experts to explore potential avenues for action if alternative solutions to the labeling mandate are not proposed.
Since October 2023, under the Windsor framework negotiated with the EU, all meat and dairy items exported from Britain to Northern Ireland must carry a “not for EU” label.
The measure aims to prevent goods from circumventing EU controls by routing through the Republic of Ireland, which lacks a hard border with customs checks on goods entering from Northern Ireland.
However, the labeling requirement is slated to expand to encompass all meat and dairy products sold in the UK starting October, as per the “safeguarding the union” deal struck with the Democratic Unionist Party (DUP) in January. By July 2025, fruit and vegetable labeling will also become mandatory.
The government contends that these labels are necessary “to ensure no incentive arises for businesses to avoid placing goods on the Northern Ireland market,” asserting that Northern Ireland residents should enjoy the same access to goods as those in the rest of the UK.
In response, food producers, manufacturers, and retailers have voiced opposition, arguing that a nationwide approach will impose additional costs on businesses and drive up consumer prices.
The Food and Drink Federation (FDF) estimates that the additional labeling could incur up to £250 million in extra costs annually for the industry.
Rod Addy, Director General of the Provision Trade Federation, noted that several organizations are considering legal action as a viable recourse if the government fails to engage in dialogue.
“We are not launching a legal challenge yet, but it is being discussed and considered as a serious possibility,” he said.
John Whitehead, the director of the Food and Drink Exporters Association, mentioned that a legal challenge had been deliberated among trade bodies as a last resort, yet their preference was to “work with, rather than fight the government.”
A representative from a third trade body, opting to remain anonymous, stated: “We want to collaborate with the government to explore sensible alternatives to the ‘not for EU’ labeling proposal that align with government and DUP objectives while also serving the interests of businesses, and we believe such alternatives exist.
“However, as expected, we are also seeking professional advice, including legal counsel, given the costs and other risks to our sector posed by the government’s proposals.”
The primary concerns from the industry revolve around the disruption to production caused by the changes, with many having to manage two distinct production lines for products destined for the EU and the UK.
The Food and Drink Federation (FDF), representing over 1,000 manufacturers, has sent a letter to the Cabinet Office minister, Steve Baker, expressing concerns that the labeling plans would impact exports and could result in higher food prices.
Furthermore, the FDF noted that the new regulations would diminish the attractiveness of investing in UK food and drink producers, with some international investors already halting plans due to the impending changes.
The government’s consultation on labeling is set to conclude on March 15, with consideration given to exempting small businesses. However, producers have voiced criticism of the consultation process.
Peter Hardwick, the trade policy adviser at the British Meat Processors Association, remarked, “The consultation has been published and states that: ‘The government is legislating to confirm that labeling requirements on agrifood products are applied across GB, to ensure no incentive arises for businesses to avoid placing goods on the NI market.'”
The sentiment expressed by Peter Hardwick reflects a concern that the consultation process lacks genuine dialogue, resembling more of an impact assessment than an opportunity for meaningful engagement.
In response, a government spokesperson emphasized that these measures are aimed at ensuring consistency in access to goods across the UK, particularly in Northern Ireland, while safeguarding the internal market and the Windsor Framework. They highlighted that businesses have already begun implementing the “Not for EU” labeling in Great Britain.
Regarding the ongoing consultation, the government is actively seeking stakeholder input and evidence on the most effective implementation of GB labeling requirements. This includes consideration for exemptions or additional support, particularly for small businesses.