A large midlands-based firm has warned of the unseen consequences that a hard Brexit could have – and the knock-on effects on the Irish agri-business industry.

CJ Sheeran Ltd – a timber pallet manufacturer with six plants across the country – has issued a warning of the impact a no-deal Brexit could have in terms of logistics and protocol – essentially more hoops to leap through for exporting, and longer waiting times.

Headquartered in Mountrath, Co. Laois, the firm makes heat-treated pallets for a range of companies including a number of agri-business and food processing firms, including dairy processors.

The company warned that a crash-out scenario could see the price of exporting rise for nearly 75% of Irish businesses, due to the type of packaging they use for transport – specifically pallets.

It was noted that the majority of goods are imported and exported on pallets. Under a special European regulation aimed at stopping the spread of pests including the bark beetle and the pinewood nemutode – ISPM15 – goods travelling between EU countries and external third countries must be heat-treated and kiln-dried – and stamped accordingly.

While transport between countries within the EU are exempt from the ISPM15 regulation, once the UK leaves the EU, it will lose this exemption unless a deal is made on the matter.

This will have knock-on consequences on what pallets can be used, checks for such packaging and other criteria – on top of the wider publicised issues of customs and tariffs – impacting a number of agri-food firms and rural businesses in the process.

While Sheeran – which produces almost two million pallets a year and recycles an additional two million – already heat-treats and kiln-dries its pallets (meaning a possible boost for such industries in the short term), concerns have been expressed going forward.

Managing director of CJ Sheeran Ltd, Mark Sheeran, has warned that, as a result of such consequences, long delays would be inevitable at Irish ports – which could prove costly.

While Sheeran and similar manufacturers see the pallet heat-treatment rules for export as a possible opportunity for growth, there is strong concern that such growth would be fleeting.

If UK business declines in a hard Brexit scenario, then customer exports could shrink in size accordingly – including their pallet orders.

This could have serious consequences on Irish firms at every stage of supply – including food products, packaging and everything in between – and the rural communities they employ, the midlands sawmill warned.

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