As part of a host of post-Brexit changes, new ‘Not for EU’ labelling will be required for food sold in the UK. Food manufacturers are already warning that this new legislation, coming on top of the complexity of the Border Target Operating Model, will cause considerable cost and disruption.
In this blog, we explain more about why these labels are required and what your manufacturing business can do to get ahead of the game.
Why are 'Not for EU’ labels now needed on food products?
Post-Brexit, it is important that food intended for the UK does not pass to the EU. There is a risk of goods being moved from Northern Ireland to the Republic of Ireland and reaching the EU this way. The ‘Not for EU’ labels are designed to smooth post-Brexit trade between Great Britain and Northern Ireland and limit the chance of UK goods crossing the Irish border.
The labels will be required on food products sold anywhere in the UK, so that there is no extra cost associated with selling in Nothern Ireland specifically, as this could discourage businesses from operating in this market.
When will the change occur?
Businesses have already started adding labels to all meat and some dairy products moved to Northern Ireland.
From 1 July 2025, individual labelling will be required on fruit and vegetables, fish products and composite foods such as pizza. All other products must be labelled at box level. The requirement also no longer applies just for food moving to Nothern Ireland. Food sold anywhere in Great Britain and Northern Ireland must have a ‘Not for EU’ label.
There will be a 30-day transition period after 1 July, and the government has indicated that it will initially take a light touch approach to enforcement.
Why is 'Not for EU’ labelling an issue?
Instilling such a significant and far-reaching change to packaging will result in costs, with one UK dairy company saying new labels alone will cost £1m a year, before even calculating the extra expense of a new labelling machine and additional staff. These costs will eventually spread to the consumer, and smaller operations will find them more difficult to absorb, stacking the odds against niche food manufacturers.
Many companies have previously targeted the same product lines towards the EU and the UK. Where this has been the case, manufacturers will have to split production in two going forward; a significant operational undertaking. The tight turnaround between the legislation’s announcement and implementation has also put financial and organisational pressure on businesses, with many industry bodies filing complaints. There are also worries that the new rules will discourage global investment in UK food and drink producers.
What can you do to prepare?
Ensure you and your team are familiar with the intricacies of the technical requirements, as outlined here.
Businesses can also take advantage of up to £50m offered by the government, as a retrospective grant at a flat rate, for firms who can demonstrate their additional labelling costs. It is therefore absolutely vital that all contracts related to labelling are clearly logged in a contract management software system. Extra staff assigned to labelling related jobs and their hours worked must also be clearly reported on. A strong time and attendance solution can help leaders do this, with job costing functionality and reporting capabilities providing a clear view of how much labelling has cost you in staff hours.
Procurement teams must also be sourcing the best priced and most effective printers to lessen the impact. Sourcing management allows you to compile and compare quotes in a single location, aligning with budgets and ESG requirements.
The 'Not for EU' labels add to the pressure caused by increased EU border controls, and manufacturers must put in the work to align with the post-Brexit reality. While the path forward may be marked by operational challenges, preparedness will help soften the blow.
