Brexit’s challenge to egg processors

SANOVO EGG GROUP’S chief executive Henrik
Pederson has spoken of the challenges the company
has faced in preparing for Brexit.

The egg processing giant, which plans to change
its name to Ovodan in 2019, has a UK subsidiary in
Braintree, Essex.

Mr Pederson told the International Egg Commission
conference it had been hard to know exactly how to
prepare for Britain’s departure from Europe.

The group trades egg products between its businesses
that process egg across the continent and its UK
subsidiary deals with colony, barn, free range and
organic products, he said.

“Eggs are not only coming from the continent, but we
are taking British eggs, shipping them to the continent
then returning them to the UK as products,” he said.

The business “had tried to take a practical approach,”
added Mr Pederson, explaining that concerns over
administration, currency and stock availability had all
featured as part of preparations.

And sales conversations, too, had been a challenge in
some instances. “Spot sales are easy, but when it comes
to longer-term contracts the important issue came up
about having a clause included about potential duties
being imposed.

“That has been a very frustrating issue to discuss,
because nobody knows whether tariffs will be set at
zero or 30%, for example.”

Mr Pederson said the company’s warehouse was fully
stocked, but it had not taken on additional storage. It
had also hedged some currency and was “working
closely with customers, to keep them informed of our
plans”.

Sanovo Egg Group is a sister company to Sanovo
Technology Group and has its headquarters in
Denmark, but also operates in Germany, the UK,
Venezuela and China.

Mr Pederson was speaking at the recent International Egg Commission conference