New UK-EU deal could ease pressure on food processors

The UK food processing industry may be poised for a boost following the announcement of a new trade deal between the UK and the EU, aimed at easing some of the frictions that have disrupted cross-border food movements since Brexit.

Unveiled on 19 May, the deal includes a new Sanitary and Phytosanitary (SPS) agreement, which will remove routine physical checks on animal and plant products crossing the Channel. For food processors, particularly those reliant on EU-sourced ingredients or exporting chilled goods, the reduction in border delays and paperwork could prove significant.

Under the new arrangements, routine physical checks on agri-food products at the border will be removed for trusted traders, with a shared commitment to uphold high food safety standards on both sides. In principle, this could mean fewer delays, lower compliance costs, and a more predictable flow of goods for businesses importing ingredients or exporting chilled and perishable products.

Industry leaders have expressed cautious optimism. Karen Betts, Chief Executive of the Food and Drink Federation (FDF), welcomed the announcement while warning that further work is needed to secure meaningful change for manufacturers.

“Trade with the EU is incredibly important to UK food and drink manufacturers. Europe is our single biggest customer, and most of the food and drink we import — from ingredients to finished products — comes from Europe too. However, trade in both directions has become complex and challenging. UK food and drink exports to Europe have fallen by a third since 2019 and businesses continue to face challenges and delays with imports,” said Betts.

“We’re pleased to see today’s announcement of a much closer UK-EU trading relationship, which acknowledges our shared high standards in food and drink. A high-quality agreement will have clear benefits for consumers and businesses. However, the government must continue to work closely with industry on the detail and ensure the UK is able to influence EU decision making where this impacts British businesses and competitiveness, particularly where the UK aligns with EU rules.”

Others in the sector echoed this sentiment. Judith Bryans, Chief Executive of Dairy UK, described the easing of SPS requirements as “very welcome” for agri-food exporters — but the need for operational clarity remains.

The new agreement may also open the door for previously restricted exports such as raw sausages and chilled minced meat, which had been caught in regulatory limbo due to differences in post-Brexit standards. But such changes will depend on implementation timelines and how regulatory agencies interpret and enforce the new terms.

The UK government has framed the deal as a long-term economic opportunity, suggesting it could add nearly £9 billion to the UK economy by 2040. However, the projection spans multiple sectors, and the specific benefits for food processors will depend on trade volumes, administrative efficiencies, and ongoing policy alignment.

One area that may spark political friction is the UK’s acceptance of limited alignment with EU food standards, including oversight mechanisms involving the European Court of Justice. Critics argue this amounts to a loss of regulatory sovereignty, while others see it as a pragmatic move to rebuild economic ties with the UK’s largest trading partner.

The Country Land and Business Association (CLA), representing rural businesses, warned that while the deal represents progress, some of its provisions are “deeply troubling”, particularly around the lack of UK influence in EU decision-making processes affecting food and agriculture.

For now, manufacturers are awaiting detailed guidance from the Department for Environment, Food and Rural Affairs (Defra) and HMRC, who are expected to release operational details in the coming weeks. Until then, many food processors will remain cautious — hopeful for smoother flows, but alert to the complexity of cross-border trade.