Until the arrival of corona, the newspapers were full of it: Brexit. It's quiet on that front, even with the British. Don't let that put you to sleep. January 1, 2021 is still the hard deadline. This can have major consequences for the onion sector, among other things.
Every year, around 50.000 trucks with Dutch products head to the United Kingdom. This also includes lots of fruit and vegetables, because the island is far from self-sufficient. This will not change in the short term. The consequences of a border that abruptly closes to freight traffic are immense.
Export destination number 1
A total of 2019 tons of onions were shipped from the Netherlands to the United Kingdom in the 95.132 harvest year. No other European destination can match that. The importance for the onion sector is therefore very great. Hiccups at the border can throw a wrench in the export engine, not to mention import duties. The export level is, however, at a lower level than in the previous three years. Then it did not fall below 3 tons. The absolute highlight is 100.000, when almost 2016 tons of Dutch onions crossed the British border.
The country is a very stable customer every year and is also participating well for the 2020 harvest year. The UK even starts in the first 3 weeks of the new season kop with 4.188 tons of onions.
Dover bottleneck
The biggest fear now is the logistics bottleneck. Almost all goods are imported into the country via Dover. So-called 'green lanes' should give priority to freight traffic carrying fruit and vegetables. However, when Brexit failed to materialize last spring, these plans were also shelved. These plans – called Operation Brock – are now being revived because they may become necessary.
Prime Minister Boris Johnson, corona crisis or not, makes no bones about it. The country will leave the European Union on January 1, 2021. At the same time, the British and the European Union have not reached a consensus on anything. The fear of a hard Brexit is therefore certainly real. In the meantime, negotiations will continue until October 2. Another 3 rounds of negotiations are on the agenda. The EU is even setting the Brexit deadline at the end of October, in order to have sufficient time so that any agreements can be worked out in a timely manner. The next negotiations are scheduled for August 17.
Obstacles in 2021
What does this mean for the onion sector? In any case, an extra uncertain factor in a special season. Special in terms of growing season, thanks to the corona crisis and therefore the dormant Brexit. Even though the withdrawal, especially in combination with corona, could cause an economic malaise, the British will certainly just buy onions. After all, the shelves must remain stocked and there are no alternatives.
Perhaps Operation Brock can partly overcome the logistical challenges. The plan is to divide the highways around Dover so that trucks can travel to and from more easily. Minister Michael Gove, who previously held the agricultural post and is now responsible for cabinet affairs, is allocating €790 million to prepare the borders for Brexit. The largest portion - €500 million - goes to Dover and the surrounding area, so that freight traffic can continue unhindered. However, a smoothly functioning border control is not possible in the short term. A logistics bottleneck must therefore be taken into account for 2021, which could hinder onion exports.