Since there is a flat fee for each shipment, the situation is more complicated for lower value items. This means that they have been able to maintain their weekly shipments from the factory in the Marche region of Italy to their UK warehouse. For higher value shipments, such as pallets of espresso machines, the additional administrative cost adds only several pounds to each machine’s landed cost explains Peter Garcia, who manages Victoria Arduino in the UK. The impact largely depends on the value and frequency of shipments. Importing companies need to register to import goods and each shipment has specific customs and tariff paperwork. The current implementation requires items to be declared and import tariffs to be paid. So let’s start with the supply chains that allow coffee and equipment to enter Great Britain.īringing items into Great Britain from the EU is now both more complicated and more expensive. No longer just in timeīritain imports more than it exports. To explore where the coffee industry can go next, we start by identifying the current situation and how that shapes the coffee community’s options. Good analysis will put ourselves in the best possible position to successfully tackle challenges and seize opportunities. The closer you are to consumers the more you’ve been on the receiving end of cost increases as well as goods and staff shortages.Īnother recurring theme is that in the context of the coronavirus pandemic, global supply chain issues and the Russian invasion of Ukraine, it’s important to correctly identify the drivers of issues facing the coffee industry. The closer you are to coffee production or manufacturing, the more you have been impacted by the post-Brexit trading regime and sought to shelter your customers from the impacts. The biggest differences largely depend on one’s role in the supply chain.
There was a range of political opinion, but when it comes to the impacts and repercussions there was much in common. To understand the opportunities and challenges facing the coffee industry we’ve spoken with dozens of people including importers, business owners, baristas and brokers. So, as the new regime takes shape, United Baristas thought it timely to look past Westminster politics, take a practical look at how Brexit is going and identify ways the coffee community can move forward. We’ve tried to be glass-half-full about it, but it’s been difficult when it feels like the Prime Minister has knocked you, spilt half your coffee onto the floor, then staggered off without apologising or sorting it out ( c.f. Plus, the additional challenges and requirements have taken resources away from tackling Britain’s low growth and poor productivity.Ĭlearly the form of Brexit chosen by the Government has caused a bit of a mess. The chaotic implementation has been expensive for business and fatiguing for people. Parts of the agreement are yet to be fully implemented with a cloud hanging over others. The future of the trading relationship with Europe is still being finalised. Great Britain is outside the single market. In reality, things are in a more difficult place. And with the greater certainty, people can plan for their future and business invests to improve productivity and profitability.
With goods and people moving freely, inflation is lower. Young Europeans work in the United Kingdom for a period and Britons still have the opportunity to live on the Continent. In this imaginary outcome both coffee and coffee equipment are easily imported into Great Britain and dispatched around Europe.
In a parallel universe there’s a different implementation of Brexit.
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