Shoppers have been urged to avoid stockpiling food in the event of a no-deal Brexit.
The British Retail Consortium said retailers are increasing stocks to ensure a “sufficient supply of essential products” and that any impact to the food chain is likely to affect fresh produce like fruit and vegetables, which cannot be stored for long.
Without a deal, after January 1 the public will face more than £3 billion in food tariffs and higher prices throughout 2021, the trade body said, adding that the uncertainty is making it harder for businesses to prepare.
Chief executive Helen Dickinson said: “Retailers would have no choice but to pass on some of these additional costs to their customers, who would see higher prices filter through during 2021.
“Moreover, new checks and red tape that will apply from January 1 will create an additional burden for retailers and their customers.
“Retailers are doing everything they can to prepare for all eventualities, increasing the stock of tins, toilet rolls and other longer life products so there will be sufficient supply of essential products.
“While no amount of preparation by retailers can entirely prevent disruption, there is no need for the public to buy more food than usual as the main impact will be on imported fresh produce, such as fresh fruit and vegetables, which cannot be stored for long periods by either retailers or consumers.”
Ms Dickinson warned that the public will “pay the price” of a failure to “agree a zero-tariff agreement”.
“With many people’s finances already strained by the economic impact of coronavirus, households can ill-afford a significant rise in food prices. For the sake of customers and businesses around the UK, we need a deal in the next three weeks,” she said.
Earlier, British Chambers of Commerce president Baroness Ruby McGregor-Smith told Sky News the UK needs a deal “as soon as possible”, adding: “We need to understand how we are going to trade and what the rules are.”
“I think it’s very difficult to be ready because there are a number of areas where we don’t have any detail at all,” she said.
“We don’t understand anything around quota tariffs or quotas. We don’t understand anything in detail about rules of origin.
“We’re not going to know what tariffs are going to be imposed on any goods leaving or coming into the country, meaning we won’t know the price.
“What we’ve seen in the pandemic is huge amounts of support given but we still have a significant number of industries shut down. On top of this we don’t know how we’re going to be trading from January 1.”
She added that there “could be some significant job losses”, compounded by a “lack of Government support after March as we come out of the pandemic”.
It comes after last week shoppers were told they may face temporary shortages of some fresh foods and price hikes.
The chairman of Tesco, John Allan, also said shoppers could turn to buying UK-produced items when imported goods jump in price due to import taxes.
He told the BBC import taxes could push the price of brie cheese up by 40% and may mean British shoppers opt for cheddar instead.
Mr Allan warned food bills could climb by 5% on average in the event of a no-deal scenario, with specific products likely to increase significantly more.
However, Foreign Secretary Dominic Raab has said he is “not concerned” about potential food price rises or shortages if the Government fails to strike a trade deal.
But Mr Allan insisted impending tariffs will increase prices, and warned there is likely to be disruption during the transition period which could impact the transport of some foods and lead to empty shelves.
He told Bloomberg: “Those almost inevitably are going to lead to higher prices, and I think if we go out on a no-deal basis that is unavoidable.
“We may see some shortages of fresh foods, particularly short-life fresh foods.
“I think that will only be for a limited period, perhaps a month or two, before we get back to normal.
He added: “I don’t think there is any reason at all for any consumer to panic or panic-buy at the moment.
“There is still going to be plenty of food in the UK – there may just be slightly restricted choice for a period of time.”
Alongside its grocery competitors, Tesco has been stockpiling long-life items in its warehouses in preparation for a no-deal.
Last month, Sainsbury’s raised concerns that the supply of some fish, dairy and meat products to its stores in Northern Ireland could be significantly reduced next year due to Brexit.
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