September 20, 2018

'No deal' Brexit could cause job losses, says chief executive of feed producer

The chief executive of Devenish Nutrition, a producer of feed for pigs, poultry, cattle and other animals, warned that a 'no-deal' Brexit could lead to job losses at its manufacturing site in Belfast, Northern Ireland, Belfast Telegraph reported.

Richard Kennedy explained that such an outcome would result in tariffs on imports and exports, thus pushing up prices and inducing a knock-on effect on prices of animal food products.

 
Devenish Nutrition, according to Kennedy, depends significantly on making its products with imports from outside the UK and on its export sales. About 40% of its annual sales are generated overseas.

 
With a worldwide manpower of 450, Devenish Nutrition employs around 200 people from Belfast. In the event of a 'no deal', the company's sales arrangements could be jeopardised overnight, as its exports are covered by current EU trade agreements.

Furthermore, Devenish Nutrition may need to move production to another region if it hopes to obtain market access in the future, Kennedy added.  

 
"We could manufacture in the EU to get access to markets and you could have jobs going from Northern Ireland, but it's really too hard to say," he commented.

 
 "There was a democratic decision for Brexit so let's go on and make sure it has a minimal impact on business and on the economy of Northern Ireland, and on people. We need a deal to be done to make it possible for business to continue and grow in Northern Ireland. Any procrastination is now endangering business."

 
Devenish Nutrition recently announced a long-term funding deal including EUR40 million (US$46.7 million) from the European Investment Bank, which Kennedy said had been delayed by six months due to uncertainty over Brexit.

 
- Belfast Telegraph