Small food, drink, farming, wholesale and logistics businesses have been told to start preparing for a planned UK-EU sanitary and phytosanitary agreement that could reduce paperwork and border friction from mid-2027.
The government says the agreement is intended to make trade in plants, animals, food, feed and related products easier, cheaper and more predictable between the UK and the EU. For SMEs that stopped exporting after Brexit, or that have absorbed extra admin on imports, the announcement is worth treating as an early planning signal rather than a distant policy note.
What has happened
On 5 May 2026, the government published information for businesses on the UK-EU SPS agreement first agreed in principle in May 2025. SPS rules cover areas such as animal and plant health, food and feed safety, certain nutrition rules, food labelling, organics, agri-food marketing standards, pesticides and biocides.
The government says the agreement is intended to take effect in mid-2027, with more detailed guidance and support starting in May 2026. It is urging businesses in the agri-food sector to begin preparing now, including firms that do not currently trade with the EU.
The groups likely to be affected include farmers and primary producers, food and drink businesses, hauliers, logistics providers, importers and exporters of SPS goods, pesticide and biocide suppliers, retailers, wholesalers, seed suppliers, plant businesses and horticultural firms.
Why this matters for smaller firms
Border administration can hit SMEs harder than larger companies because the fixed cost of paperwork, checks and specialist advice is spread across fewer consignments. The government says export health certificates, which can cost up to £200 per consignment, would no longer be required under the new arrangements. It also says routine border checks currently applying to imports such as dairy, fish, eggs and red meat would be removed.
For a small cheese exporter, fish processor, specialist grocer, wholesaler, farm shop supplier or chilled-food courier, those changes could affect pricing, delivery times, spoilage risk and whether EU trade becomes viable again. The government also says some products that have faced restrictions, including fresh sausages, burgers, certain shellfish and seed potatoes, could regain EU market access.
That does not mean every firm should rush into new contracts today. The detailed rules are still to come, and some businesses will need to adapt where UK and EU rules have diverged since EU Exit. But it does mean owners have time to map what could change before customers or suppliers ask for firm answers.
What SMEs should check now
First, identify whether any part of your business touches SPS goods. This is wider than many firms assume. It can include food ingredients, finished food and drink, animal products, plants, seeds, horticultural goods, feed, labelling, organics, pesticides, biocides and related logistics.
Second, list the friction points you currently face. That might include certification costs, veterinary paperwork, port checks, courier delays, short shelf-life issues, Northern Ireland movements, supplier minimum order sizes or customer uncertainty. A simple list will make it easier to compare the new guidance when it arrives.
Third, speak to trade bodies, customs agents, hauliers and key suppliers early. The government is advising firms to connect with trade bodies and sign up for Defra email alerts. SMEs that wait until operational details are final may have less time to adjust systems, labels, contracts or routes.
Fourth, watch the cash-flow effect. Lower paperwork costs can help margins, but preparation still takes time and money. If the changes could reopen EU sales for your firm, build cautious scenarios rather than assuming instant demand. If you are already trading across borders, the planning should sit alongside wider resilience work, including fuel and delivery cost checks such as our recent note on fuel duty uncertainty and SME transport costs.
The practical takeaway
The SPS agreement is not live yet, and the detail will decide how useful it becomes for individual SMEs. But the direction is important: businesses in food, farming, plants, wholesale, retail and logistics may get a route to lower border friction and wider EU opportunities from 2027.
The sensible step now is not to make promises to customers. It is to prepare your questions, know which products are in scope, sign up for official updates, and work out where reduced paperwork or restored market access could genuinely improve margins. For many small firms, the advantage will go to those that are ready before the final guidance lands.
Sources: GOV.UK information for businesses on the UK-EU SPS Agreement.
