DUBLIN, Ireland - The milling industry has warned that Brexit could add an extra 10 cents on the price of a loaf in Ireland.
This, the industry pointed out was because about 80 percent of the flour used in the Republic for baked goods and other products comes from the U.K.
It has further warned that the products could face “an inflation-busting tariff if a deal is not struck.”
According to the National Association of British and Irish Millers, if Irish producers switched suppliers to those operating within the EU to avoid trade barriers, then jobs would be lost in the U.K.
In a statement, Director Alex Waugh said, "If tariffs were to be introduced, the rate the EU normally charges those at would add eight to 10 cents to a loaf of bread in the Republic. It is pretty inflationary, assuming the flour continues to come from the same source as now. Once you introduce a tariff everything changes, so the likelihood is that the flour currently coming from the U.K. would come from somewhere else in the EU where there would not be a tariff."
The U.K. has become the main supplier of milled flour to the Republic over the last 20 years.
Waugh said that this could result in jobs losses in the U.K.
Further, flour is sent from the U.K. to Ireland to be refined into bread and cakes to coating for chicken nuggets and battered fish.
They said, it is often exported back to the U.K. as part of finished goods.
Waugh added that half of the flour used by Irish bakers is milled on the island of Ireland, a significant proportion of that from Belfast, and the rest comes from England.
Adding, “What we are seeing is politicians trying to respond to different pressures in different places. From the point of view of our business, maintaining that tariff-free trade between the U.K. and Ireland is crucial."