Maximise stockpiles before Brexit: UK to supermarkets

Bloomberg

Theresa May’s government has told supermarkets to keep as much stock as possible in warehouses around the country in case the UK crashes out of the European Union without a Brexit deal, officials said.
The request is being made by ministers because in the worst-case scenario, a no-deal Brexit would cut the capacity of the country’s main EU trading route from the French port of Calais to Dover in southeast England to just 13 percent of the current level due to additional border checks. Six government and
industry officials with knowledge of the matter spoke to Bloomberg on condition of anonymity because the contingency plans aren’t public.
Retail giants including Tesco Plc, J Sainsbury Plc, Walmart Inc.’s Asda and Wm Morrison Supermarkets Plc — the country’s four biggest grocery chains — are now asking their main suppliers to ramp up their stock over concerns that half their shelves will be empty if there is a hard or no-deal Brexit, according to Joe Clarke, national officer for food and beverage at the Unite union.
Tesco declined to comment; the other three retailers didn’t immediately respond to a request for comment.
The Department of Health said in a letter it expects up to six months of “significantly reduced access” especially on shorter shipping routes in the event of a no-deal Brexit. It didn’t give specifics on what businesses should do to prepare, though it said “six-week stockpiling activities remain a critical part of our contingency plans.”
With Parliament looking almost certain to reject May’s Brexit agreement with Brussels in a crucial vote, ministers and government departments are stepping up planning for a no-deal exit from the bloc. That’s because it’s the default path if the premier can’t get an agreement approved by lawmakers.
But the timing of the Health Department’s letter risks angering Brexiteers, who will likely see it as an attempt to exert pressure ahead of the vote.
The government is trying to find new ways to get products into the country, one official said. In the short term, measures include drawing up a list of priority goods, with medicines at the top, the person said, noting that it would essentially be a return of rationing.
A shortage of temperature-controlled storage space means not all medicines can be stockpiled. Hancock told the BBC his department is buying refrigeration units to enable some drugs to be stored. He also said preparations are being made to fly medicines in and fast-track trucks with medical supplies.
“We are working on ensuring that we have aviation capacity,” he said.
“If there is a serious disruption at the border, we will have prioritisation — and prioritisation will include medicines and medical devices.”
Lack of temperature-controlled warehousing also affects supermarket chains. The facilities are expensive to build and manage, costing millions of pounds and taking one to three years to construct.
As companies seek more space, supermarkets are also expected to help stockpile their main manufacturers’ goods in their warehouses, three officials said.
Worries over panic buying and loss of access to the EU’s customs union and single market are mounting for grocers, as they predict a 47 percent drop in goods and believe supply chains could dry up within two weeks of a chaotic exit from the bloc, Clarke at Unite said.