Monday, January 28, 2019

McDonald's and KFC warn of shortages and price hikes if there's no Brexit deal

https://www.cnn.com/2019/01/28/business/brexit-impact-food-prices/index.html


In consequences of Brexit, the companies in the food industry are anticipating significant problems that would negatively affect their supply chains.
The terms of Brexit will be valid after 60 days, and the British government still has not devised plans to regulate their economy. Two sides are still arguing on whether Britain should do a hard or soft Brexit, and if there is no specific agreement on what should be done until the terms take effect.
The biggest concern of these companies are basically the shortage of employees and the import costs that are estimated to rise. This would affect not just the UK farmers but everybody, because we need food to survive. The overall cost will increase and the consumers would have to pay more for food. Companies are saying they are stockpiling the supplies as much as they could, but there is a limit to how much one could accumulate them for so long. The storage cost will also be a painful loss to the companies.
Considering that quite a lot of the British people did not even know what EU was, and what kind of benefits England was gaining from being in the union, Brexit may conjure many more problems. Partiality towards immigrants is of course, a valid reason to vote yes for Brexit. There are more reasons why, but it seems that the whole event was rushed and irrationally done. If the British government cannot come up with an amending policy, the citizens would be the ones that may be paying the price for their irresponsible decisions.
There were definitely downsides of being in the EU. The gains that Britain earned by being a member of the EU were significant as well. Hence their plan must be made before due date. Otherwise people would have to lose more than they thought.

1 comment:

Marie said...

There are many more reasons why the UK voted to leave the EU. One of the important ones is the huge amount of contributions the UK made annually to the European. Total net contributions where about 8.9 billion pounds* for 2017 alone. Although certain things will get more expensive for the UK, their government is going to have much more room in their budget to help with these problems.
*https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7886