Ranjit Singh Boparan, the founder and chief executive of 2 Sisters Food Group, has launched a rallying call for the UK to vote to remain in the European Union, warning Brexit could spell disaster for the British food industry.
2 Sisters employees 23,000 at 45 sites in the UK, Republic of Ireland, Netherlands and Poland, supplying a third of all poultry consumed in the UK.
In an editorial published by a trade magazine, Boparan argues that the UK should remain in the EU because:
- Brexit will create uncertainty: Uncertainty leads to reduced consumer spending, higher interest rates and potentially higher cost of goods, all of which could decimate the British food industry. The pound has already dropped at the prospect of Brexit.
- The British food industry relies on European workers: Food and drink is one of the UK’s biggest employers – it provides jobs for three million workers, and a third of the workforce in food manufacturing is made up of people from the EU states, according to the Office of National Statistics.
- British farmers and other food producers rely on the single market: The single market gives them access to 500 million customers, allowing goods and services to be sold on an unrestricted basis. Leaving the EU, but remaining in the single market, would see us following the rules set by the EU, but with no say over them.
- Increased costs will threaten the viability of food businesses: There is a risk ingredients and packaging costs will increase.
Boparan commented: “A vote to the leave the EU has the potential to decimate the British food industry. It’s already a tough environment; highly-labour intensive, high volume, producing very low cost products for low margins, and operating in a deflationary market. The additional challenges Brexit could create for my industry will put many businesses at risk and I don’t think that’s a risk worth taking.”
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
