Ireland could see an increase in the prices of bread due to tariffs on ingredients, following Brexit.
The Irish Bakery Association (IBA) has cautioned that that there would be a rise in bread prices as bakers heavily depend on British flour.
Food Drink Ireland (FDI), which represents the food and drink sector, is concerned on the impact of the Rules of Origin in the EU-UK Trade and Cooperation Agreement (TCA), which slaps tariffs on ingredients such as flour.
The FDI urged for an exemption for the country’s bakery sector.
Director of FDI Paul Kelly said, “Under the Rules of Origin in the TCA, there is a requirement that the wheat used should be of UK or EU origin, with a maximum tolerance of 15% for grain from other countries such as Canada or USA. If the wheat used to make flour is more than 15% of 3rd country origin, the full tariff of €172 per tonne becomes payable.”
Ireland’s flour supply is mainly taken from Great Britain with a high proportion of wheat from Canada and the US, which is 80% of the flour used in the Irish baking industry.
If said tariff applies, Irish bakers could see a 50% sudden rise in production costs, which would mean a 9% increase in bread prices for consumers.
Secretary of the IBA Gerald Cunningham said, “It is important for the market to know what is happening, and that without external interventions, price rises are inevitable.”
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