Labour Falls, Price Rises

http://www.bbc.com/news/business-38259823

Following Brexit,The UK is currently having less food choice and higher food prices because the supply curve is moving to leftwards and upwards while the demand curve is moving rightwards and upwards.

Many food and drink association have claimed that EU workers, who play an important role in the supply chain, are already leaving because they are ambiguously assured about their right to remain in the UK. The EU workers are only one-third of the number of workers in the industry, but they are generally skillful and high quality workers. They are also highly flexible and can provide the UK with a large number of skilled, semi-skilled and even unskilled labour in the long-term. EU workers  possess a lot of skills that cannot be found in UK workers. It is very often that companies have to look into the Europe continent for food engineers and skill labour; farms also rely on unskilled workers coming from other parts of the EU. Not enough graduates are coming through from UK universities, argued Nestle chair Dame Fiona Kendrick, who is also president of the Food and Drink Federation. She even said that, “We just can’t find the people in the UK to do the jobs,”

With Brexit and its subsequent fall of the value of the pound, the UK’s economy in general and the food security in specific are at risk as trade associations have warned. Thus, this industry’s importance should be as equally considered and recognised by the government as financial or automotive sectors, for the sake of the UK’s “economic and physical wellbeing”.

While there is this problem in the food industry, the Home Office, in respone, said the UK government needs and is trying to diliver a fair and controlled immigration policy and wants to see the net immigration to the UK fall down to sustainable levels while making sure that all voices are heard. Still, it is a very complex issue.

 

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