British Flour Suppliers To Ireland Consider Tariff Reducing Methods
It has been reported that British flour suppliers to Irish bakeries are contemplating importing and milling wheat from the EU and selling the end product to Ireland.
According to the Irish Times, the move hopes to reduce the impact of tariffs in a no-deal Brexit.
The announcement comes from a British-Irish bakery industry group, the National Association of British and Irish Flour Millers.
The group highlighted that the majority of Ireland’s flour is bought from mills in the UK, with Ireland only having one mill which could not hope to meet the demand for the entire market.
This would mean approximately 4,000 tonnes of flour would come under World Trade Organisation tariffs in the event of a no-deal.
The report suggests a tariff of €172 per tonne of flour, the equivalent of 15 cents per loaf of bread.
National Association of British and Irish Flour Millers, suggested that sourcing and milling EU wheat and exporting that flour would reduce the impact of tariffs.
“It is a lower tariff but the overall cost is still quite a lot higher than it is today. It would reduce the tariff impact by two-thirds,” he said. “It is a lot better.”
He also suggested that flour could not be stockpiled for anything more than a few weeks at a time, making the process complicated.
“There’s just not the storage capacity. Flour is generally transported in bulk in road tankers and therefore you need either silos or spare tankers to store it in,” he said. “You can stockpile a week or so but after that, you run out of space.”
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Hospitality Ireland print edition.